Right click errors are generally caused by these two updates:
Right Click - HourGlass - Update 817287 and/or 821557
If your right clicking abilities are more complexed, run this edit.
Enable or Disable the Right Click Context Menu (Line 56)
http://www.kellys-korner-xp.com/xp_tweaks.htm
To use the Regedit: Save the REG File to your hard disk. Double click it
and answer yes to the import prompt. REG files can be viewed in Notepad by
right clicking on the file and selecting Edit.
If none of the above applies and you have Hotbar installed, run this edit:
Hotbar - Windows Explorer/New/Folder Freezes (Line 206)
http://www.kellys-korner-xp.com/xp_tweaks.htm
If this is not the case try these suggestions:
Right click a blank area on the Desktop/Properties/Appearance
/Effects. In the Effects dialog box, click to clear the: "Use the following
Transition effect for menus and tooltips check box, and ok your way out.
And/or: Click the folder or file that you want (select it) before you
right-click it to display the shortcut menu.