in snow leopard desktop icons snap to grid automatically

What do I do when all of a sudden my desktop icons automatically snap to grid ? And I can't create a new Folder for desktop files--"Folder" is greyed out. I can't move a file or folder to the desktop at all; it's as if it's off limits. The Geniuses say its a users problem--there is only one user, no change. NO installation of new software. I was told to download and install Maverick. Unfortunately I am stil using Appleworks and don't want to disable it, which Maverick AND Lion will do . I have 10.6.8 Snow Leopard now.

Any other ideas? I am going to print replies and take them to the Genius people!

Also, what is the solution to the AppleWorks problem. Do I have to download Pages or something and drag and drop each and every appleworks doc into it? Is there an app that can do this? And what is the program I should download to take AW's place?

Thanks!

kk