Can not rename or delete folders "graphically" (command line is OK

I can not rename or delete folders from a folder container/gui. It's very
frustrating to do system administration without this. I can rename or delete
them from the command prompt, but not from a gui folder view.

I have a Windows XP Professional with Service Pack 2 installed, in fact I
reinstalled it twice only to discover the same problem.

Have you encountered this problem before?
Do you think it is virus related? Any connections with spyware such as
sp.xxx, etc.?

Thanks in advance,
Michael