Outlook Express -Attachments

Lately when I go to insert a file attachment into Outlook Express say page2.jpg from the folder D:\Screenshots instead of one icon called say page2.jpg I get 22 icons - g p j D 2 e g a p blank s t o h s n e e r c s blank :
which shows in reverse except for the colon and D screenshots page2.jpg-the folder and name of the file with the D and the colon indicating the drive. All I should have in that attach Window is one icon called page2.jpg ......the file could be a text file or anything and I have only chosen this as an example.

If I am in safe mode or if I drag and drop the file onto the email it attaches normally as it should as page2.jpg. It is only when I use the menu Insert/File attachment option.

I use Windows XP Pro with NTFS and have done a virus scan etc to eliminate any problems from nasties.

I have tried restoring Internet Explorer and re-installing SP2.

Has anybody got any clues as to what is happening here or any suggested fixes?