I have the exact same problem, both with the unclickable files and the duplicate folders in windows explorer.

I installed a patch, which resets windows explorer in attempts to fix the problem; however, it did not work.

Here's the link to the kb tha I thought would do it: An update is available that improves the performance and reliability of Windows Vista

If anyone has experienced this and found the solution, I would be most appreciative if you would provide some insight.

Thanks!
jdincinci