It's possible there's not enough free disk space for Netscape to create chace files, in which case you'll need to make some room or you could
Go to preferences (in the browser)
Open the folder saying 'advanced'
then the one named 'chace'
and reduce the amount of mb/kb netscape is allowed to use for making chacefiles.
EDIT: just saw the latest post too, Neb. I have something similar which is extremely annoying. For a while Netscape may work as normal, but then it slows down and practically freezes. The only thing I've found I could do was close Netscape and press ALT-CTRL-DEL, where you can still see netscape running, close that and try again. It's not uncommon to happen several times in a row either.
And yes, I do have the latest version which didn't change much for me.
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