Great, it was a difficult one but I found the answer on Ask.com. Better than Google sometimes, worth remembering.
Dave

This may be worth reading:
http://forums.techguy.org/windows-nt-2000-xp/368431-solved-right-click-any-file.html#post2665614

Dave

Another thought. Try updating the NVIDIA driver in device manager (display adapters). This has been known to work.

Microsoft's patch adds a executable file called Verclsid.exe, which validates shell extensions before they are loaded by the Windows Shell or Windows Explorer. HP's Share-to-Web Namespace Daemon...

Sorry I missed seeing this other problem. Have you tried removing MS upgrade KB908531?? May work after a restart.
Dave

Hello all,
I am new to this but felt I had to reply to this post.
There is a very simple 'cure' for this line 65 non supporting action problem as there is with many of these things. Right click...