Which of the two has stopped working?
Something else you can check too.
If you show both Hidden and System files via Folder Options/ View
Do you have a file called Desktop.ini in this folder - C:\Documents and Settings\USERNAME\SendTo
See if it has something like this in there?
"[LocalizedFileNames]
Mail Recipient.MAPIMail=@sendmail.dll,-4
Desktop (create shortcut).DeskLink=@sendmail.dll,-21
Compressed (zipped) Folder.ZFSendToTarget=@zipfldr.dll,-10148