Windows 7 bad pool header

I'm getting a BSOD on an acer aspire one d255e netbook running windows 7 starter 32 bit. It read "bad pool header" and occurs about 2 minutes after the netbook boots windows. Problem originated when the netbook was connected to a projector. When the projector was disconnected it crashed.

The PC is able to run in safe mode but its acting strange. For example I tried to create a new folder on my desktop and rename it, however windows said the folder no longer exists. Not sure whats going on.

Any help is appreciated!