I was trying to rid my System of unnecessary extensions, finally trying InformINIT and Extension Overload on for size. (EO is the better of the two, IMO.) Having completed that exercise, being very careful to leave anything alone that I could not find absolute agreement on between EO, II and EM that it was not needed for PPC / OS 8.1, I ended up with a strange error message on startup. (EM actually said some things were for PPC that II said were for 68k, so I left them.)
The error message is: "Unable to pick a file from the folder. The folder is empty."
What folder? I went back to the Extensions folder, to see if there were any newly created, empty folders. Nope. I did not move any Prefs during this session. I shuffled some Control Panels, but no folders were involved, as there were in Extensions.
I also happened to use Find File, and that caused a lock up. It found the file alright, but when I clicked on the folder in the FF window, to get to the item I wanted, it locked up. I was able to do this successfully on the second try, after restarting.
All ideas are welcome, especially those that lead to the correct solution!