Cut/Past/Right Mouse Click menu issues

I haven't seen any of this posted, and now it's happened to a second machine of mine and before I end up hosing up with one too, I was hoping others have run into this and been able to fix it.

My issue is with attempting to cut/paste or use the right click mouse buttons in windows explorer (not IE but the file manager) and also power desk (a window file manager replacement). If I highlight a file and press CNTL-C or CNTL-X to copy/cut the machine gives me an hour glass and then when the cursor returns, if I hit CNTL-V to paste, it gives me the hour glass for several minutes and then it returns the cursor but the file isn't copied. Same type of thing with right mouse clicks. If I right mouse click in these applications, I get nothing. But cut and paste works in other applications (wordperfect, word, notepad, etc) so it's hard to believe it's the clipboard.

I killed my dimension 4500 with trying to reinstall xp from the restore disk (both restore and reinstall) to the point where it doesn't see my network card/sound card and now it's happening to my laptop.

The machine in question is an inspiron 9200, 2gb memory, the high end 17" display (1900x1200 I think). I hadn't downloaded/installed any software prior to it happening and I have zonealarm pro, spyware doctor and bit defender internet security running. Virus scan reports nothing, spyware scan reports nothing. Anyone have any suggestions or has anyone run into this and fixed it?

Thanks, Rob