File and Folder Clips
Whenever you cut or copy files or folders in "My Computer", Windows puts a clip on the clipboard and your clipboard captures it. This clip is not the actual file(s) that you cut or copied but simply the information that Windows needs to copy or move the file(s) when you subsequently paste them.
If you cut files from one folder and paste them to another, then the clip which was captured no longer has any meaning because it contains the information to copy files which no longer exist. On the other hand, if you copy files from one folder and paste them to another, then the clip is still valid. If you regularly copy and paste the same files, you can therefore use your clipboard to save time.
When you first install the program, the pasting of file and folder clips is disabled. You have to enable it from the options window. This is for one simple reason - In addition to "My Computer" windows, file and folder clips can also be pasted to your desktop. If you enable file and folder clips, then accidentally click on one when no other program is running then the files will all appear on your desktop.
Additional 98/XP Feature
Whenever you cut or copy files, the program also creates a text clip containing the file name(s). This feature currently works in Windows 98 and Windows XP only. If you have 98 or XP, this feature works whether or not file pasting is enabled.