dll not a valid Windows image but dll doesn't exist

I'm using Windows XP Professional (5.1, build 2600) and I've included my dxdiag in an attachment below. Recently I've been getting the following error whenever I open up any application:

"The application or DLL C:\WINDOWS\system32\hugilani.dll is not a valid Windows image. Please check this against your installation diskette."

I can open my files, I just get this incredibly annoying popup any time any program opens. I searched for the file in its supposed file path but it wasn't there and a system search found nothing. I did have hidden files and folders visible. I've tried to find the file online via google so I could put it back into the system, but I've found nothing. Any help you guys can provide would be wonderful.

thanks in advance,
Lotus

Well bad news is that your system is infected with any harmful Malware or Antivirus. You need to cleanup your computer immediately. Which antivirus do you have? Update it to most recent signature and perform deep scan. Apart from that you should also try scanning your system with /several/ of the better online scanners, such as:
Kaspersky Antivirus (http://www.kaspersky.com/virusscanner)
Panda ActiveScan (http://www.pandasoftware.com/activescan)

Yeah, Taidje is correct. Your system is infected. Better run a recently update virus checker at once.