If you repair permissions off the CD, please RE-repair them from Disk Utility after you login. The BOM archives that permissions repair uses on the Installer DVD/CD are (potentially) woefully out of date.
I think reinstalling the OS is a last, last, last, last resort, plenty of other things to do first to troubleshoot.
Another step to try is to boot into Safe Mode and remove your com.apple.finder.plist
Boot into Single User Mode: restart holding down Cmd-S
At the prompt type:
fsck -fy
(press return, once it's done and IF it says the equivalent of 'file system ok')
Then type:
mount -uw /
(please note that is mount<space>-uw<space>/)(press return)
Then type:
mv /Users/shortusername/Library/Preferences/com.apple.finder.plist /Users/shortusername/Desktop
(please note that is mv<space>/Users/shortusername/Library/Preferences/com.apple.finder.plist<space>/Users/shortusername/Desktop) (please note that "shortusername" needs to be replaced with your short user name)(press return)
Then type:
reboot
(press return)
Login as normal.. is the Finder still freaking out?
Example (rebooted Single User mode and now at prompt):
Code:
localhost:/ root# fsck -fy
** /dev/rdisk0s9
** root file system
** Checking HFS Plus Volume.
** Checking Extents Overflow file.
** Checking Catalog file.
** Checking multi-linked files.
** Checking Catalog hierarchy.
** Checking volume bitmap.
** Checking volume information.
** The volume YellowRules appears to be OK.
localhost:/ root# mount -uw /
localhost:/ root# move /Users/yellow/Library/Preferences/com.apple.finder.plist /Users/yellow/Desktop
localhost:/ root# reboot