Many thanks, Lord L. The only reason I'm using the latest Redmond folly is because it came pre-installed on my new toy. There was no way I would have up-graded otherwise. Starting to look as if the first job is going to be a re-format, re-partition and install 98SE - at least that way I've been through most of the problems already!
Bring back OS2 Warp
PS - Have just discovered the problem... the computer (Dell laptop) has both a touchpad and a pointer 'nipple' (for want of a better word)
If I use the 'nipple', everything works as normal; it's only the touchpad which won't allow window re-sizing. Sooooo.... anyone know how to disable either of these devices - preferably the 'nipple'. Needless to say, the oxymoronically named Microsoft Help has nothing useful on the subject.