Missing "Rename" option in My Documents' files & folders

On my WinXP SP2 Home Edition system, with all Windows updates applied,
two problems have arisen.

A month or so ago, shortcuts to all files or folders I'd accessed began
appearing in the My Documents folder. Just a week or so ago,
right-clicking on any of the files or folders in My Documents has
failed to provide the "Rename" option.

After undoing the Read Only check-mark the My Documents folder
properties, and in any of it's contained files or folders, and applying
the change and OKing out, upon reviewing the properties, the check
(actually a minus sign) had reappeared.

However, in other folders, located outside of MyDocs, the folder's Read
Only status does not remove the right click "Rename" option. So, this
is probably irrelevant.

I've tried various methods of changing the ownership, but that doesn't
seem to work, although I admit being a bit confused by all the
potential owners listed. I have a no log-in setup, but both of the
accounts, Karen and Administrator have admin privileges.

I hope I have included the relevant details and that someone will be so
kind as to try to help me with these two problems.

Many thanks for your consideration,
Karen

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