Problem with Outlook Express creating folders

I have a customer with problems using his Outlook Express when trying to make a new folder. When you click on new/folder, nothing happens (no window opens asking for your input as to folder name. Also, trying to use move/folder doesn't work. Drag and drop folder does work however. I have compacted folders, and even created a new profile (new/folder worked until I imported the old messages). Once (just once) after compacting, new/folder worked until I exited program and re-started it, then it stopped working.