can't copy paste or drag files in Windows XP SP2, paste is grayed out, can't start RPC service

My computer (Dell Optiplex GX270) can't copy paste or drag files in Windows XP SP2, even within the same local drive. The paste choise is grayed out, and I can't start RPC services
MattZ888Asked:
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skywalker39Commented:
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jcimarronCommented:
MattZ888--Perhaps of help
Copy and Paste
http://www.howtofixcomputers.com/bb/ftopic140408.html

RPC
http://www.hardwareanalysis.com/content/topic/22343/

I wonder if installing XP SP3 might not fix both issues.
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MattZ888Author Commented:
skywalker39:
Sorry the steps in the link did not work for me. An error appeared saying the Cyptographic services not available.
jcimarron:
Failed to copy svchost.exe, saying another process is using the service.
How do I do a repair install of XP without losing my data and reinstalling all the applications?
Thanks.
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jcimarronCommented:
MattZ888--Repair Install should not affect your personal data or installed apps.  But always good to backup first.
Simple instructions
http://www.dougknox.com/xp/tips/xp_repair_install.htm
Basically the same but a lot more warnings, etc.
http://www.michaelstevenstech.com/XPrepairinstall.htm
P.S.  Do not worry that you could not copy svchost.exe.  I had not seen that advice in the RPC link and am glad you did not fool around with it.  You may be interested in what svchose is all about
http://support.microsoft.com/?kbid=314056
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jcimarronCommented:
MattZ888--In the above, "svchose" should be "svchost".
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MattZ888Author Commented:
I ended up backing all my data to an external USB drive via Ycopy tool and ghosted the C: partition. It is working fine now. Thank you all yoour tips.
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