John,

Both the registry keys you mentioned have the correct data as you
described.

Great. That pretty-much rules out you have another "SendTo" folder hidden
somewhere.

I have found references to a "Sendtofix.vbs" that claims to fix the
problem but I hesitate to try it not understanding what it does.

You already did most of it. :-)

The only remaining commands are these :

WshShell.RegWrite "HKCR\exefile\shellex\DropHandler\",
"{86C86720-42A0-1069-A2E8-08002B30309D}", "REG_SZ"
WshShell.RegWrite "HKCR\lnkfile\shellex\DropHandler\",
"{00021401-0000-0000-C000-000000000046}", "REG_SZ"

Which just mean you could also check if the two HKCR\xxx registry paths
contain those {....} GUID keys (HKCR - HKEY_CURRENT_USER).

You could also just run the script (it looks harmless enough), but that robs
you of being able to see if eitherr of the above registry keys is the
culprit.

After that I'm out of suggestions I'm afraid.

Regards,
Rudy Wieser