Drag & drop issues. Error & explorer crashes

Ok, here's the issue:

Under "My Documents" folder:
Two windows open, one empty for a new file to go into... One with the original file I wish to transfer.

Once the file is dragged & dropped to the empty folder I created in "My Documents", it becomes inaccessible. "C:\\.... Folder is not accessible, Access is denied"

Also if it's a file I moved to a different folder in the "my documents" section, it will no longer open for the same reason. When I use the program pertaining to the specific file to open it, it will tell me that it cannot open that file.

When I try to copy that file, I get an explorer crash and a "send error report" screen. I can't check the error because explorer goes down along with the net. When I check the error report, MS has nothing about this problem in their archives. Can anyone help on this?

 

run these free tools[adaware , spybot and spyware blaster] -links below--first and we'll then move onto tech solutions if need be.
ps.are you using xp[what are your system specs?]