This is the explorer bug I have had since...forever. I am running Windows XP Corporate Service Pack 2, with all current updates.
The effects of this bug are as follows:

Elements disappear
Elements aren't clickable
No right-click
Won't open new programs or windows
Programs throw up random errors
Restores more than one window at the same time
Screen saver doesn't work
Programs can't be closed or terminated if they're unresponsive
When web browsing, a new page won't load, or the screen will turn black
Programs can't be minimized, but they can be restored or maximized
No popup descriptions
Programs become unresponsive and/or crash

I can stop this from happening temporarily by closing two windows, it doesn't matter what they are. 
But the bug comes back again every couple of minutes and gets more severe until I eventually need to reboot.

I ran XPY over the fresh install, as it was ALREADY slow, I didn't like it so I reversed the changes, but these changes still remained:

Programs won't group
Quick Launch gets reset every reboot
No user image in start menu
No welcome screen, which does make boot faster, but switching users annoying

What I have done to fix the problem, all attempts of course have failed:

Re-apply the service pack.
Reinstall.
Format and reinstall.
Install it on a new hard drive.
Install it on a new computer.