Folders unload themselves to desktop

My wife's PC has decided to unload folders she has on her desk top and place both folders and files into a band at the bottom of her screen. When she clicks on the desktop folder, it is empty. If she tries to drag the files back to the folder, they return to the band.

I think she's going to cry.

I don't know anything about Windows (last used XP). Her laptop is a Toshiba, about 3 years old, running the most current Windows version.

Does this sound like a virus? It occurred after I installed a driver for a new monitor.

Thanks in advance for help. John

I just ran system restore from several dates, but kept getting a message that one file could not be accessed and restore failed. I guess I'll have to reinstall the OS.