Explorer crashes when dragging and dropping files

[cutiebird]

I have recently done a clean install of ME and now I find that 75% of the time when I drag and drop files explorer crashes.

When I move the object slowly over some folders before I release the mouse button one of two things happens:
1. it is steady but leaves remnants on the screen
2. it shakes - almost as if the object being dragged is blinking like the cursor.

When the first happens explorer does not crash and the remnants vanish after a refresh. When the second happens explorer crashes and a Ctrl-Alt-Del fixes it.

I have a Logitech MouseMan and I have tried it with three different drivers, the standard 2 button serial driver, the ME Logitech MouseMan driver and the latest driver downloaded from Logitech a few days ago.

I have tried the TNT2 Ultra with the ME nVidia driver and the latest Detonator 3 driver v631.

Oh, and I have installed all the latest ME upgrades.

This system

Windows 98SE
Celeron SL32A 300a (98360791) @450
128Mb RAM in BE6 MB
WinFast 3D S320 II Ultra
12.5Gb DeskStar - IDE3 master - boot disk
20.5Gb Barracuda - IDE4 master
6.4Gb IBM - IDE2 master
Sound Blaster Live Value
Logitech MouseMan
NetComm 56Ultra SVD
ASUS 50x CD-ROM - IDE2 slave
HP CD-Writer 9100i - IDE1 slave