"Cannot create Toolbar" error when you enable Quick LaunchPublished: August 2004
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When you try to enable the Quick Launch or the Desktop bar, you may get the error "Cannot create Toolbar". This might happen if the Quick Launch folder is missing in this location:
%Appdata%\Microsoft\Internet Explorer\Quick Launch
To resolve the problem, type this command from Start, Run dialog:
The above command creates the Quick Launch folder automatically, if it is missing in the above location. Now, try to enable the Quick Launch bar. If the problem persists, run the following command:
REGSVR32 /i SHELL32.DLL
To create the Quick Launch folder manually
Click Start, Run and type the above line to see if the folder exists. In most cases, re-creating the folder helps you turn the Quick Launch bar ON. See this knowledgebase article which says for Windows 98/ME, but should also apply for Windows XP (the Quick Launch folder path will vary anyway)
Restart Windows and enable the Quick Launch bar.
Quick Launch settings are lost on reboot?
If the Quick Launch settings are lost on every reboot, fix your Userinit path as explained here