Took me forever to figure this one out. Winrar 3.9.0’s right click “extract here” always worked before.
I was also able to select multiple photos in Windows XP and rotate them with a right-click > rotate photo clockwise.
All that stopped one day. I didn’t know why. I finally got fed up and looked for the answer.
The culprit was the CuteFTP Content Menu. It was breaking other context menu’s in Windows XP. Specifically, it broke my ability rotate multiple images and it also broke the WinRAR 3.9.0 context menu. Everything started working fine once I unchecked the option in CuteFTP’s General options. I found the solution using the tips here: http://windowsxp.mvps.org/slowrightclick.htm
If it’s happening to you, download the program mentioned in the link above and start disabling all non-Microsoft Context Menu handlers one-by-one until your Right Click works again.