Windows Explorer has stopped working - Vista error

After about a month of being happy with Vista, i ran into this message. It all started by Vista not being able to restore from hibernation. Then, when it attempted to start normally, after log on two messages kept coming up with "Windows Eplorer has stopped working" and that Vista is restarting it... over and over... After skimming through web and basically not finding a resolution, this is what I did:

1) Restarted Vista in Safe Mode - didn't do any good - the error appeared even there.

2) Restarted Vista in Safe Mode with Command Prompt
- there i ran "MSCONFIG" and:
a) Disabled all non-microsoft services
b) Disabled all start-up programs
c) Disabled UAC (some posts on web suggested that it might be the cause of problems)

After restart, the issue was still present. So back to the Safe Mode with Command Prompt:
d) open the Event Viewer (you'll find it in the Tools tab) and check application log. In my case, there was an error that windows can't read the file "C:\Users\...\AppData\Local\Microsoft\Windows\Explorer\thumbcache_idx.db".
e) run command (from Tools again), and rename the file (using "move") or even delete it.

Restart and all good! Vista will then show dialog that you modified the start-up options and whether you want to take your changes back to "Normal" - do so, restart again and you sould be back in business...