When you have run your Virus Scans are they set for "All Files"?
Try checking this setting.
IE/ Tools/ Internet Options/ Security/ Internet/ Custom Level/ Drag and Drop or Copy and Paste.
Specifies how you want to handle potentially risky actions, files, programs, or downloads. Select one of the following:
To be prompted for approval before proceeding, click Prompt
.
To skip prompting and automatically refuse the action or download, click Disable.
To automatically proceed without prompting, click Enable.
Note: Some options do not provide a Prompt setting. Also, these options do not apply to FTP folders.
If no luck try this site for a "Drag and Drop" XP fix. The zip file is a direct link to down load the file (21kb).
Some general things to try.
See if System Restore will get you back to a restore point before your problem with Explorer.
Try Safe Mode (Do you have this problem in Safe Mode?).
Run the System File Checker program from the Run Box by typing.....Sfc /Scannow in it and have your XP CD handy.
HOW TO: Verify Unsigned Device Drivers in Windows XP
If they don't work you could try repairing windows itself by running it over itself. You will lose all your windows updates but your files will be untouched.
How to Perform an In-Place Upgrade (Reinstallation) of Windows XP (Q315341)
For Java, you go to
Sun and download their full version. It's free:
Or you hunt around for a Microsoft Java VM. If you can get any old version of that installed you can then update to the current version through Windows Updates, but you must have some version installed to do this update. For legal reasons Microsoft cannot help you with Java any more, but are allowed to update older versions, for the present.