The locking up and bombing problem while throwing away folders could be
caused by a couple of things. Try these steps:
1. Rebuild the desktop by holding down the Command and Option keys
while the system is starting up from a floppy disk.
2. If the problem persists, reinstall the System and AppleShare
software, as there may be some pointers to the Desktop and Finder that
could be corrupted. This would explain why files can be thrown away
when booted from a floppy.