Just a quick guess...   Any chance the "lock the toolbars" is checked ?

Download this and run it

it should work

Check all box and hit apply

then restart the computer

Good Luck

After re-reading the original ouestion a few times, I don't think my suggestion is going to work. I'm not exactly sure of the specific problem.

I had originally thought that the toolbar within Internet Explorer was somehow balled up; now I'm more confused and don't know exactly what is the problem.

The "lock the toolbar" menu can be found by simply right-clicking anywhere on the toolbar itself. (I assume you do have the toolbar displayed,  but you cannot use it...)

But like I said, I'm uncertain of the specific problem...  Good luck.