Wow, this goes back in time. First things first. Rebuild your desktop. If finder seems out of whack or you are finding the the icons are not displaying properly are sure signs of this problem. It can get severe enough to mimic your problems.
First reboot your system holding down the shift key (extensions off).
As soon as you see the OS logo hold down the option and apple keys together. The system will ask you if you want to rebuild the desktop. Let the desktop rebuild itself and reboot the system. This procedure should be done on a monthly basis to keep your system running at its best.
I hope that this clears up your problem, if not post and we will deal with the results.

Thanks Mac for your reply. I tried all of those tricks but to no avail. In the end I did a re install to OS 9.1 now works good. I do have an i Mac Tiger & also Panther but like to keep the older model. Thanks again Norm.