A QUESTION in the Thread, NOT AN ANSWER!
Magoo, thank your for your question! I am having the EXACT same problem with my Windows Explorer, though I am running Win 98 (on a 5 year old Dell XPST700 running Pentium 3 700MHZ 248 MB Ram). The problem - getting the endless hourglass and in operative Edit and File functions while in Windows Explorer - only happens when I open Temp and Temp Internet Files folders in the Windows folder, ie the Edit, file and right click menu options work fine on other folders in Windows specifically and Windows Explorer generally. I thought it might be a virus and so I did a Google for Virus and "Windows Explorer". Your post came up.
The problem SEEMED to originate after I did the first of two MS Automatic Critical Updates that were issued last week and this week (August 2004, though I have had a lot of common client issues in the last few months causing fatal errors. Often when I get a blue screen and have to reboot, I get a notice that an undefined program isn't responding. It is marked by the exclamation point only in the warning box, so I don't know what program is hanging up. I worry that it is a virus program somewhere in DOS. (I am not an IT techie, just a general user with a basic understanding of my computer functions, so any responders, please be basic and specific.)
I am also running Norton Utilities, Norton Security with Firewall and Antivirus, both of which were disabled during installs, as well as Adware 6.0. The antivirus is updated automatically on a near daily basis, or when new parameters are issued.
MAGOO Did you find the etiology of your problem?