Please Help : Folder on desktop not opening

Dear friends,

I have an Intel Celeron 2Ghz, Intel 845GL chipset
motherborad, 256MB Ram, directx 9c desktop PC with WinME.
Recently I have been facing a strange problem. If I put
any folder on desktop, it is asking me to find a program
to open that folder when I'm trying to open it by double
click. If I right right-click on the folder, I can see
two "Open" options, one of which is working and the other
is not (I am getting this two "Open"s on right-clicking
any of the desktop items but all others except folders are
opening on double click).

Kindly help me get rid of this problem.
Regards,
Arindam