Can’t Copy/Move or Drag Items

I have a Win 98 machine sp1. It for some reason doesn’t have the ability to allow the user to Copy/Paste or Move items anywhere in the explorer or desktop.

I have reinstall Win 98. (Doesn’t Work)
I have reinstall SP1 (Doesn’t Work )

My only other option is to possibly the registry. Can anyone tell me how I may fix the problem without reformating and reinstall?