Try the fixme.bat first, Sandy. I believe this happened to me once before and I think it was the fixme.bat that helped. It doesn't hurt to try it whenever something sort of happens strange in UFT. It's one of the best "additions" that the programmers made to the software.
To use it (if you don't know), make sure UFT is closed down. From your Windows Explorer (right button at start to Explore) window, locate your UFT program (mine is under C:/UFT) and then double click on fixme.bat ... that's all there is to it. Then go into your UFT program again and see if it's working correctly.