The behavior that you describe has been experienced by other computer users. In some cases, it is related to a bad installation of IE6 SP (Internet Explorer 6 Service Pack update). It can also occur with a faulty installation of a later version of IE. In many other cases, it is due to the presence of Spyware or viruses that is causing “Internet Options” not to work.
Internet Options Does Not Display: Update Internet Explorer
It’s important to make sure that you have the latest version of Internet Explorer. To obtain the latest update or version of Internet Explorer, visit the following link: Internet Explorer Upgrade. The current version is IE8.
Internet Options Does Not Display: Scan for Spyware
One of the most common reasons behind “Internet Options” failing to display any choices is the presence of some form of malware. Typically, spyware and the like will disable this option so that you cannot reset any of the changes that have been made by the spyware application. In some cases, you might even notice that your home page has changed or a toolbar has been added to your browser. However, it isn’t always evident that spyware is taking over. If you do not have an anti-virus/anti-spyware application, obtain one and use it to scan for spyware now. I can recommend Anti-Virus Plus, which is a reliable anti-virus/anti-spyware application.
Internet Options Does Not Display: Spybot Search & Destroy
Another cause that can lie behind the disappearance of “Internet Options” in the Tools menu is an action taken by Spybot Search & Destroy. In order to resolve the issue, complete the following steps:
- Open Spybot Search & Destroy.
- Click the “Immunize” tab.
- Look for a checkbox in front of the phrases “lock IE start page setting against user changes” and “lock IE control panel against opening from within IE.” Uncheck them in order to reactivate “Internet Options.”
Please note that not all versions of Spybot Search & Destroy have this option.
Internet Options Does Not Display: Additional Causes
Someone else has administrative control of the computer such as a work administrator, teacher, or parent and has cut off your access to this feature.

Troubleshooting Add-ons
Sounds like you have a lot going on with your computer, so let’s see if we can’t figure out what’s going on. The “Specific module could not be found” error caught my eye along with the mention of Yahoo and Google toolbars. It sounds as though you’ve already solved the network connection disappearance by reinstalling your hard drive though I’m not sure about that so I’ll address that as well.
The easiest thing to do is to temporarily turn off your security, download Java and then turn it back on again. It is always hard to tell a user to turn off their security, even temporarily, so you might want to try a few other things first.