winCATSDPF Error

"Windows cannot access the specified device, path, or file. you may not have the appropriate permissions to access the item."

I've had my hard drive re-formatted recently and had (MS Windows XP Professional 32-bit SP3) re-installed. Problem is that I'm getting the above error when trying to launch .exe files from my usb drive (FAT32). Now I can no longer run any of my portable executable files.

Any help on this please?

Notes:

I've researched about this online and tried most of the supposed solutions already to no avail. I have admin privileges & I've scanned my usb drive with Symantec AV and AVG - no viruses found. I've also tried copy the exe to the hard-drive and it runs. I've tried to launch the exe files in a different computer and found no problems.

Supposed solution: Add an exception on IE/Tools/Internet Options - not applicable, I'm trying to launch a local exe
Supposed solution: File properties, click "Unblock" - not applicable, this option is not available
Supposed solution: De-selecting IE Enhanced Security - don't quite know where this can be found on IE6