Problem - context menu items of shortcuts

I guess it's a registry problem, When I right-click any shortcut on the virtual desktop (the one at the top of the folder list) the system options do not work I.e. click on "run as administrator" and "open" fail to start.
However it works fine from the actual folder or right-clicking on an executable file (.exe).

I don't think Directory Opus is to blame.

P.S. I tried windows explorer (which I dont like using) and that has the same difficulty and in addition it fails also with shortcuts in the real desktop folder.