Win2k: Randomly moving folder icons on desktop

This isn't a virus (I think). What happens is that I will have a file and a folder on one side of my desktop. Once I drag and drop that file into the folder, the folder icon moves itself to the left side at the next available location under all the other icons. The folder could be located all the way to the right, or center, it doesn't matter. Once I drop something in, it moves itself to the left side.

Current desktop settings (items checked have an "X "):
Active desktop
X Show Web Content
X Show Desktop Items
X Lock Desktop Items
Syncronize
Arrange Icons
(no items are checked)

This behavior happens even after I "Line up Icons "

 

No takers?

 

Strange problem. Probably no takers because everyone else is as clueless as I am.

I avoid using the desktop folder for anything other than shortcuts because it has tended to do some odd things to me as well. It's such a specialized folder that I don't trust it for sub-folders and file storage - even short term.