Repair your SolidWorks installation is the next step to take.
Hi Richard Bremmer
Thank you for your reply.
I have now tried:
1.Fresh Install of Solidworks
2.Fresh Install of EPDM
3.Repair install of Both
4.Unregister of dll files ("sldwinshellextu.dll" & "sldthumbnailprovider.dll")
5.Changing setting in Solidworks and Windows to view thumbnails
We did have an upgrade to Windows 7 Enterprise so we are going to try a fresh install in case windows was a bad install. I will keep posted incase this works.
So I had to do a complete fresh install of Windows to resolve this problem and now all is good.