It seemed to happen just out of the blue...when I went to rename a couple of music folders my computer freezes up, then have to use Task Manager to end the process or restart the computer. I can right click system folders (My Computer, My Documents) and the desktop as well and it seems to work, but any folder that I've made will freeze the computer when it is right clicked.
Any help would be greatly appreciated. I did do a system restore to a time before this as well a a ERUNT registry backup and still have the same problem. Avira SCAN quarantined a couple of things also.
If I don't get back to anyones reply right away it's because I've been up all night playing with this...will check when I wake up.

Thanks again.
Windows XP SP3Hi Buddy

Now it doesn't hurt to state the obvious!

Is your XP up to date with automatic updates etc?

If you have done a system restore have you reinstalled any drivers that may be required for your mouse?

Have you checked the mouse manufacturers website to see if they have updated drivers for SP3.

Hope this HELPS.

TechnowarriorHey, thanks but I restored to just before this happened and like I mentioned I can right click any other folder except ones that I've made myself and everything works fine. This leads me to believe it is nothing to do with the mouse, just to make sure the mouse drivers are fine anyway. All updates are good too.Sounds like it's an overly large folder...
Try ORGANISING it into smaller sub-folders if possible...I don't think that is the problem....it is any folder, even if I create a new folder on the desktop, leave it empty, then try to delete it, or rename it. Do you think it could be some kind of infection. Avira did pick up something in the System Volume Information (I'm assuming system restore)? Maybe something got in and already did the damage. Was also wondering if SFC /Scannow would help if some operating files got messed up? Or should I post my logs in the virus section before I try anything else?
Sorry for all the questions...been up pretty much all night trying to figure this ^%& thing out.
Thanks.The Virus and Spyware section would be my next visit if i were you...
Be patient...they're kinda buried right now.You can at least...

Download HijackThis:
http://www.trendsecure.com/portal/en-US/tools/security_tools/hijackthis/download
by clicking on Download HijackThis Installer
Install, and run it.
Post HijackTHis log.Thanks Patio & Broni...Will post the logs in the virus section as soon as possible...I'm still kind of working & have a delivery to make in case I don't respond right away.

If it helps...I still can right click and open zip files and the task bar, start menu etc.....just not any file that I've created???Have posted my logs under viruses & spyware...could use some help. Thanks.Someone will be along shortly...be patient.