Your system has been infected by the SirCam worm, and either the sirc32 file has been deleted, or you have upgraded from Windows 98 to XP or 2000 (and the location of the recycle bin has changed). Unfortunately, in this case, you will be unable to run programs that end in .exe extensions. But programs that end in .com are ok.
The best thing to do in this case is to visit an antivirus web site and download instructions for manually removing the virus (I won't walk you through that here-- but it does involve modifying registry entries among other things). This is necessary because you can't run exe files. It is probably a good idea to print out the instructions first.
Also bear in mind that the registry keys which have to be altered need to be exact. If they are not, then it can cause problems for running executable files.