MS Works may have clipboard limitations that you are seeing.
You may want to have a look at OpenOffice.
It's free and is not saddled with all the limitations of MS Works.
It can read all your MS Works files, and MS Office files as well.
After some preliminary familiarization with its menus you will be very satisfied with the performance.
(One of the things it can do is export Office files as a PDF type so anyone can read it with Adobe reader.)
The site for the download, etc. is here:
The large User Guides (PDF) are here:
http://wiki.services.openoffice.org/wik ... e_Chapters
The machine looks OK to me from the standpoint of malware.