cannot rename files or folders

When I highlight a file or folder, the highlighting lasts for about a second and then disappears. I certainly have no time to get the cursor to the highlighted area, though I am not sure that getting the cursor in the correct position would solve the problem. I cannot rename any file or folder except in safe mode.

Here is what I have tried:
1. making all folders on a drive non-read (i.e., attrib -r) & checking permissions
2. disabling all shell extensions that were not Windows, Intel or Internet Explorer
3. running Security Essentials, Malwarebytes and CCleaner Registry
4. restoring computer to earlier point
5. uninstalling everything for the last 2 days
6. trying a new mouse

The problem started in the last 24 hours when the computer mysteriously shut down. Even though I am spending all my time trying to figure out this problem, I have found no other issues.