It sounds like you have a broken shell extension. Malware and virus scans won't show a normally good program that's come unglued.
Do right-clicks on files or drives ever work?
Do you have any registry cleaners/scanners available? That could help tie up loose ends, though you'll probably find a thousand issues if you don't do this regularly. Something like JV Powertools would work.
I'd be watching for issues with anything in a shellex branch (i.e. ...shellex\ContextMenuHandlers) or with installed programs you know add themselves to right-clicks: Winzip, virus scanners, etc.
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There are a vast number of people who are uninformed and heavily propagandized, but fundamentally decent. The propaganda that inundates them is effective when unchallenged, but much of it goes only skin deep. If they can be brought to raise questions and apply their decent instincts and basic intelligence, many people quickly escape the confines of the doctrinal system and are willing to do something to help others who are really suffering and oppressed." -Manufacturing Consent: Noam Chomsky and the Media, p. 195
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