Check the Show_StatusBar and Show_URLinStatusBar values under this key in the registry:

HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Main

Set it to no then reboot before starting IE.  Now set the status-bar as you want it.

If no joy:

Make sure only one IE window is open.
Turn on the status bar via the view menu.
Right-click the toolbar area of IE and lock the toolbars.
Hold down the Ctrl key and click the X button to close the window.
Close IE.

Now open **Windows Explorer**
Turn on the status bar via the view menu.
Right click the toolbar area of Windows Explorer and lock the toolbars.
Go to tools, Folder Options, View tab.
Use the "Apply to all folders" option.
Hold down the ctrl key and click the x button to close the window.

Restart IE and use the 'open in new window' option.

Also, a programme called Surferhelper has been known to cause this problem.  Search for iebvh3.dll and rename it iebvh3.old.  Also, BHODEMON is an excellent way to temporarily disable such programmes without having to remove them - its a free download and can be found here - bhodemon.  It does not need installing - simply unzip and run the EXE programme. It is very easy to use.  If you don't find Surfhelper, use BHODEMON to find anything else that may be lurking and causing the same problem.

Here are some standard fixes for MSOE.DLL problems.

Error Message Using Some Rules in Outlook Express
http://support.microsoft.com/support/kb/articles/Q225/0/96.ASP

MSIMN caused an Invalid Page Fault in module unknown
MSIMN caused an invalid page fault in module MSOE.DLL at memory address
MSIMN caused an Invalid Page Fault in module kernel32.dll
 

Error Message If the Folders.dbx File Is Missing or Damaged
http://support.microsoft.com/support/kb/articles/Q233/2/64.ASP

MSIMN caused an invalid page fault in module Msoe.dll
MSIMN caused an invalid page fault in module "unknown"
MSIMN caused an invalid page fault in module Directdb.dll
Msimn caused an exception C0000006h in module Directdb.dll
Outlook Express: The message could not be sent. There is not enough Disk space.
Unknown error has occurred. Protocol: SMTP Port: 0 Secure: No [SSL] Error: 0x800c0131

Err Msg: "This Program Has Performed an Illegal Operation and Will Be Shut Down"
http://support.microsoft.com/support/kb/articles/q238/6/56.asp

MSIMN caused an invalid page fault in module Msoe.dll at address.

Outlook Express could not be started. It may not be installed correctly. Make sure that your disk is not full or that you are not out of memory. Contact Microsoft support for further assistance. (0x800c012e)Outlook Express could not be started because Msoe.dll could not be initialized. Outlook Express may not be installed correctly.
Folder could not be displayed.Outlook express could not open this folder.  Possible causes are: Low disk space. Low memory.

If you can't open OE at all, you can do a find on "Rules" in the registry, and delete them there.

HKEY_CURRENT_USER\Identities\{GUID}\Software\Microsoft\Outlook Express\5.0\Rules

If no joy, you may need to create a new identity in Outlook Express. We have had some stubborn MSOE errors in the past which I am sure were created by other programmes, but we could not track down with any certainty which one it was.  Also, make sure you have background compaction turned OFF at OE tools, options, maintenance.  Background compaction is known to case database problems such as can cause MSOE problems.

Go to IE tools/internet options/connection/dial up settings/advanced dial up settings.

Make sure that disconnect when connection may no longer be required is turned off, and that the option to disconnect if idle is turned off as well. Later Windows versions have an option to disconnect when connection speed drops below a certain percentage. Turn that off.

Outlook Express options can cause problems if the programme is running. 

Go to Outlook Express,  tools/options/connection and make sure *connect to this account using* is not selected for each mail and news account. Make sure there is no conflict in account settings - each account should show the connection option of *any available*.

Next in Outlook Express  go to tools/options/connection and turn off *hang up after send/receive*.

This can happen if you have turned off active scripting for internet zone on your computer in Internet Explorer, even if Outlook Express is set to use a different zone at Outlook Express, tools, options, security.

Go to Control Panel, Internet Options, Security.  Select internet security zone. Select custom level and then turn on active scripting.

If this does not resolve your problem (make sure you reboot) then I would suggest you update your scripting engine at http://msdn.microsoft.com/library/default.asp?url=/downloads/list/webdev.asp (98, ME, NT)

Windows Script 5.6 for Windows 2000 and XP

These links will be of help with branding of IE5

Title bar
http://support.microsoft.com/support/kb/articles/q176/4/97.asp

Logo
http://support.microsoft.com/support/kb/articles/q176/7/13.asp

Also see this link: IE and OE branding

IMPORTANT UPDATE

If none of the popular search engines work, you may be a victim of QHOSTS. A list of affected search engines is HERE.  Check out the URL below for advice on how to fix QHOSTS:

Hijack prevention:

First, upgrade to Internet Explorer 6.  Most sites that try to hijack your search engine will now trigger a 'do you want to do this' warning message that helps you prevent search engine hijacking and home page hijackings (and 'hidden' background install of spyware).

Fixes:

1.  Go to IE tools, internet options, programs and use the option to reset the IE defaults.  Reboot.

2.  If that doesn't work, shut down IE and search for a *hidden* file called HOSTS (hosts.sam and lmhosts are sample files but are occasionally used in error).  HOSTS is effectively a redirection file.  Rename HOSTS to HOSTS.OLD -or- open using Notepad and remove any reference to the problem site/s (place a # at the beginning of the line or delete the line in its entirety).

3. Go to IE Tools, Internet Options, Accessibility.  Make sure there is no style sheet chosen (under User Style Sheet - format documents using my style sheet). If the option is turned on, turn it OFF.

Some specific search engine hijackings that I have addressed elsewhere in this site include:

This is the best shutdown troubleshooting website on the net :-)

http://www.aumha.org/a/shutdown.htm

How to stop Office Documents opening in Internet Explorer
http://support.microsoft.com/support/kb/articles/q162/0/59.asp

AutoVue Plug-ins change file associations in IE - cannot open Word documents or spreadsheets in IE

http://support.microsoft.com?scid=kb;EN-US;Q321810

FIX: You may receive a 'page cannot be displayed' error message when you click on a hyperlink to view a Microsoft Office document in IE6 SP1
http://support.microsoft.com/?kbid=843286

Cannot open an Excel 2003 workbook by using Internet Explorer 'cannot download, not able to open this internet site, could not open http[s]://...

http://support.microsoft.com/?kbid=840386

Office 2000 Files Do Not Open in Internet Explorer 5 [Q244159]
http://support.microsoft.com/default.aspx?scid=kb;EN-US;Q244159

Office 2000 Bookmarks Do Not Function Correctly [Q247535]
http://support.microsoft.com/default.aspx?scid=kb;EN-US;Q247535

Internet Explorer 5 Does Not Handle Office 97 Bookmark Correctly [Q240057]
http://support.microsoft.com/default.aspx?scid=kb;EN-US;Q240057

Since your computer freezes when you try to delete passwords via tools, internet options, content, autocomplete I suspect the relevant reg.key is damaged.

Using regedit, back up your registry. Export the following reg key and then delete it (just the key, not the whole folder).

HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\IntelliForms\SPW

Support for plug-ins such as Quicktime has been removed from IE5.5 SP2 onwards. See this link for further information

Netscape-Style Plug-ins Do Not Work After Upgrading Internet Explorer

http://support.microsoft.com/support/kb/articles/q303/4/01.asp 

First the basics:

How to Use the AutoComplete Feature in Internet Explorer 5 [Q217148]
http://support.microsoft.com/support/kb/articles/q217/1/48.asp
 

How to Use the AutoComplete Feature in Internet Explorer 4 [Q171230]
http://support.microsoft.com/support/kb/articles/q171/2/30.asp

To delete addressbar autocomplete entries, delete IE History.  If that doesn't help, you may need to delete the history folder in its entirety - instructions here.

To clear search engine entries, and data on forms, go to IE tools, internet options, content, autocomplete and clear your forms cache.  Passwords are cleared in at the same place.

More information about favicons can be found below:

http://msdn.microsoft.com/library/default.asp?url=/workshop/author/dhtml/howto/shortcuticon.asp

Try http://groups.google.com/ or www.google.com to find more information about favicons.

How to Add or Remove Windows Desktop Update
http://support.microsoft.com/support/kb/articles/Q165/6/95.ASP

You can try manually adding the Active Desktop by rerunning setup using the following command lines (make sure you have an active internet connection).

Windows 95
...\IE5Setup.exe /C:"ie5wzd /e:IE4Shell_WIN /I:Y"

NT4
...\IE5Setup.exe /C:"ie5wzd /e:IE4Shell_NTx86 /I:Y"

Also see.. How to determine if Active Desktop is installed:

http://support.microsoft.com/support/kb/articles/Q216/8/40.ASP

Description of the Internet Explorer 5 "Download Only" Feature
http://support.microsoft.com/support/kb/articles/q221/9/88.asp

Changes in Internet Explorer 5.5 Download Only Behavior
http://support.microsoft.com/support/kb/articles/q259/6/76.asp

How to Add the Print Directory Feature to Windows Explorer
http://support.microsoft.com/support/kb/articles/q272/6/23.asp

Extract a complete record of your history folder - works well

http://www.netlaputa.ne.jp/~mozart/soft/hist2html.html

Some specific problems with the history folder can be caused by:

Cannot view Internet Explorer history by date

http://support.microsoft.com/?kbid=819257

"Open in New Window" Restriction Does Not Work in History Pane [Q294291]
http://support.microsoft.com/support/kb/articles/q294/2/91.asp

Shut down all programmes and boot into dos if you are using Windows 95 or 98. If using Windows ME use an appropriate disc to access DOS. Run the following commands from the windows directory, typically c:\windows\>

smartdrv

deltree history

deltree tempor~1

Reboot using ctrl, alt, del if using Windows 95 or 98.  If using WindowsME remember to remove the boot floppy.

Windows 2000 users will have to log in as Administrator to be able to delete the folders in question directly from within Windows Explorer. Windows XP users will use the same procedure.

NOTE:

Different operating systems use different paths to the history, temporary internet files and cookies folders.  Check your system to make sure that you are using the correct path for your machine.  For example, you may find your folders are located at ...\documents and settings\{identity}\{dir} or similar.

HOWTO: Set Work Offline as the Default for Internet Explorer
http://support.microsoft.com/support/kb/articles/q195/7/30.asp

Error Message When You Try to Use Internet Explorer: No Connection to the Internet Is Currently Available
http://support.microsoft.com/default.aspx?scid=KB;EN-US;q303346

Unable to gain access to internet sites when 'dial whenever a network connection is not present' setting is enabled with ADSL/DSL
http://support.microsoft.com/?kbid=240808

Also, as advised by Robert Aldwinckle (Robert has been kind enough to let me reproduce his advice here ... thanks Robert) regarding this problem with cable/DSL:

"The usual explanation is that the DSL software is  PPPoE  which only provides a connection once it is started.   To  IE/OE  it looks like a dial-up link which hasn't been started and an ambiguous state. Does the user want to connect (Try Again) or work offline?

There are various workarounds.   If your OS is Windows 2000 you could try:

Cannot Connect to Internet Using Shared DSL Connection and PPPoE [Q306947]

http://support.microsoft.com/default.aspx?scid=kb;EN-US;Q306947

If your  DSL  software has a feature called  Dial-on-Demand this site suggests that  IE  likes it better
http://www.carricksolutions.com/am.htm#3

That link is specifically meant for  Sympatico users but I think that there may be other services mentioned on the site.  In any case it may give you a new idea.

More general solutions are given on this site
http://www.dslreports.com/faq/faq/5.+Troubleshooting#357

If your DSL software is a version of  Enternet both sites warn that you need to make sure that you have the latest version.   That is one of the things mentioned on this page (further down from that item)...."

Working in Background Cursor Not Displayed If Loading Web Page
http://support.microsoft.com/support/kb/articles/q274/3/15.asp