Taskbar disappears when the cursor comes near it due to corruption.
Cause:
The Registry key for the Taskbar has become corrupted.
Solution:
Run REGEDIT and delete the 'StuckRects' folder from the Registry.
WARNING: This procedure should be performed by a knowledgeable Windows 95 support person. Before making any modification to the Registry, be sure to make backup copies of the Registry files System.dat and User.dat. Using the Registry Editor and modifying the Registry incorrectly could cause serious problems that may require the reinstallation of Windows 95. For more information about the Registry Editor or the Registry, please refer to the online Help topics.
NOTE: Always back up the Registry before attempting any alteration to it.
1) Click the 'Start' button to display the 'Start' menu.
2) Select 'Run...'. (The 'Run' dialog box appears.)
3) Type the following in the 'Open' box:
REGEDIT
4) Click 'OK'.
5) Double-click the HKEY_CURRENT_USER folder.
'HKEY_CURRENT_USER' folder
6) Select the 'Edit' menu and select 'Find...'. (The 'Find' dialog box appears.)
7) Type the following in the 'Find what' box:
StuckRects
8) Click 'Find Next'. (The 'StuckRects' folder is highlighted.)
'StuckRects folder'
9) Select the 'Edit' menu and select 'Delete'.
10) Select the 'Registry' menu and select 'Exit'.
11) Reboot to Windows to reset the Taskbar.