2 Problems..(Easy I think).

First problem:
Today I turned on my computer, went to word and tried to load up a school project.
I went to file > open as always, and the menu poped up:
http://img132.imageshack.us/img132/7159/browseax2.png
But the other icons were missing.
Usually it has My computer, Desktop, and My Documents and Recent but now My computer and Desktop and recent are gone.
How do I fix this?

The second problem is whenever I go into into any side drop down menu (Like in Start > Programs, or any of the files in program files that come out at the side) it is EXTREMELY sensitive! If I am 1 pxl off, the menu will close and I will have to re open it and it makes it almost impossible to navigate anywhere.
Is there anyway to fix this?

Any help would be GREAT! Also, I've tried to repair winxp, but that didn't work. Neither did sys restore.