At the moment, it's fixed. Really strange how it got fixed though.
For some reason Windows Update would no longer work. That happened a couple of weeks ago. This machine is a dual-boot 98SE - 2K and I rarely use the 98 except for a couple of programs that do not run on 2K. Anyway, during the last update there was failure on either install or download and ever since the "update" thingy quit working.
While waiting for this Explorer issue to be resolved I decided to try and fix the update problem. Followed MS's crappy suggestions to no avail. So I decided to download and install IE 6 as I was running 5 to see if the update would work. Success on the the update problem after the time honored (

) re-boot.
I then opened Explorer and everything was back to normal.
Have no freaking clue as to what happened.
Thought I'd let you know although I'm not sure about the resolution and how.
Bill
P.S. Been on the updating system settings for about 5 minutes now. Crap!!