Hmmm, whenever I have had similar problems I do what evildave suggests, which usually helps considerably. Also, I don’t know how your desktop folder found its way into the cookies folder because as far as I’m aware it has no business whatsoever being there (normal corruption or unintentional screw up is what I’d suspect). With that said, try a right-click on your Start button and see if there are two options for exploring. With my install of winXP, one will say “Explore”, while another will say “Explore All Users”. The Explore option will take you to the Start Menu folder belonging to the account you’re currently logged into, while Explore All Users takes you to another Start Menu folder. The key to understanding what’s going on here is that the shortcuts in the All Users directory should, by default, be present in any account on the computer (at least when a new account is first created I’m fairly certain this is so). In other words, individual accounts contain their own stuff plus all the stuff designated to be shared by All Users.
Here’s an interesting experiment; log into a user’s account, create a file and place it on the desktop. Now copy the item, and place the copy in the All Users/Desktop folder. Now have a look at your desktop… what I see are two identical files (name, and extension) seemingly coexisting in the same place at the same time (not supposed to be possible), and if you right click each one in turn and select properties, you can even view that the paths (locations) shown are the same, kewl ! Of course, one of the files is an imposter, pretending to be located in the current users directory when in fact it is located in the All Users directory.
Could this be XP magic ?
You may be aware of all this, I don't know. Good luck solving your problem !