This is Peddant`s right click menu freeze answer -
A faulty Explorer shell extension put in the right click menus appears to be the problem.Known culprits include Photoshop,Divvx and Spysweeper.
From -
http://www.ghisler.ch/wiki/index.ph...C_causing_crash
1.Go to Regedit
2.Key HKEY_CLASSES_ROOT\*\shellex\ContextMenuHandlers
In this key, all shell extensions are listed which work with all files. The * is a real star, it does not mean 'any key' here!
3. Choose "Registry" - "export registry", so you can revert your changes later. Choose to export only the selected branch.
4. Now delete one context menu handler after the other, and then try each time in (Windows Explorer) whether right click works again. This way you should find the defective extension.
5. When you have found it, you need to double click the .reg-file created above to restore all shell extensions, and then delete only the malfunctioning extension.
You may have to repeat this with the keys
HKEY_CLASSES_ROOT\Directory\shellex\ContextMenuHandlers
or
HKEY_CLASSES_ROOT\Folder\shellex\ContextMenuHandlers
If the error happens with directories or with virtual folders.