Notepad Common Dialog Error (0x3002) After Updating to Win XP SP3

I have been using notepad from years together and have not seen any issue before. From past 2 days whenever I try to open the notepad, make any changes or create a new one and try to save it throws up an error message.
The only change that I remember making is updating my SP2 to SP3 on my Windows XP machine. The error message does not specify much and not sure how to uninstall and re-install the notepad program alone.
Notepad
Common Dialog error (0x3002)
