It is definetely not limited to Windows 2000, as another person just mailed me and had problems in Windows 95. Also in Win ME, although just the createshortcut problem there.
Here are the screenshots I was sent:
So far I have not been able to reproduce any of these problems on my Win ME system. This is all very frustrating.
I'll look into that parent directory thing rainwater. Don't think it is that though.