Is it there for every file or folder you right-click? I haven't used Litestep in years, but I'd guess there's something you need to delete from the registry causing the effect you're describing.

Go to Start > Run and type regedit then OK. Then on the left, expend the folder "My Computer\HKEY_CLASSES_ROOT\*\shell" - there's probably a folder in there called Search or similar you want to right-click > Delete. If not, then something else is causing the problem