Sorry, small character limit on profile posts. Issues with explorer.exe that looks like a reimage is necessary. No issues with explorer when you Remote Desktop into the desktop, which is common practice here.
So, RDP uses it's own shell, which may be shielding you from the issue when connecting remotely. Does the UI issues happen when you right click on things, specifically the Desktop? If so, look in Event Viewer for a contextual shell extension fault. Shell extensions are little buggers that create context menu entries for all of the programs and applications on your computer.
For example, you install 7Zip, and right click on files, you now see 7Zip options for compressing things in that right click menu. That's the shell extension.
If you can find the extension that's causing the fault, you can block it and see if the system becomes stable. Look here: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Shell Extensions\
Move the offending key from APPROVED to BLOCKED, and see if the UI is now stable. If so, reinstall offending 3rd party application (or just get rid of it). BACKUP REG FIRST
For example, if I wanted to disable 7-zip contextual menus, I would add a reg string entry named "{23170F69-40C1-278A-1000-000100020000}" with a value of "7-Zip Shell Extension" to this key "HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Shell Extensions\Blocked" and remove the same string from the Approved key.
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