Ed,
The Win95 box was originally IE4 with Active Desktop, upgraded to IE5 during the VS98 install and then upgraded to IE5.01. I'm assuming that something must have had one or both of those DLLs locked so the system couldn't properly replace/register them. Just reregistering them fixed it right up.
>David, did you have IE4 and Active Desktop support loaded up on the Win95 box previously? It may be as simple as needing some of the components from IE4 - I recently found out that IE5 did not update selected shell components and load Active Desktop support, so it's possible that IE 5.01 is not a happy camper without the components from IE4. That would be particularly ugly, since I don't know of a way to add the needed components for Active Desktop to retail Win95 without IE4.