Last night when I was shuttting down, I got a message that "Dedsktop Proxy" was not responding, "End now." You've all seen that, but I never installed a "desktop proxy" nor would I ever run one without explicitely starting and monitoring it myself.
It's a microsoft sub routine inherent in Explorer. Sometimes it gets confused and allows more than one instance of explorer to operate, which locks the subroutine (something like that) and casues the program to hang, and report "proxy desktop" is not responding. I had it backwards. It's proxy desktop. If you do a search, you'll find the MS knowledge base.
The wayt o stop it is to end all but one instance of exploere.exe--you will find at least two or more running. Also, you must uncheck "open in seperate process" in teh Exploere>view>options panel.
$hit, this reminds me of the old Win 3.1 days.
There's a rather obfuscated explanation at MSDN (http://msdn.microsoft.com/library/default.asp?url=/library/en-us/shellcc/platform/shell/reference/functions/shsetinstanceexplorer.asp), under remarks.
In addition, please untick- Windows Explorer >Tools > Folder Options > View > Launch folder windows in a separate process - and see if that helps. Having this on is supposed to increase system stability by opening each folder in a separate part of memory. But sometimes performance takes a hit and may be related to this problem. Experiment!