mblaney,
I have the preferences keyboard increment set to its lowest number, but I still need to move my object 1/3 as far
Are you saying that you need to move your object in increments of 1/3 of 0.001pt with the arrow keys?
Edit>Preferences>General>Keyboard Increment goes (at least) down to 0.001pt, and that is what you should get with the Arrow keys, and you should be able to see that in the Transform palette, looking at the X or Y value.
If not, it may be time for the list.
The following is a general list of things you may try when the issue is not in a specific file (you may have tried/done some of them already); 1) and 2) are the easy ones for temporary strangenesses, and 3) and 4) are specifically aimed at possibly corrupt preferences); 5) is a list in itself, and 6) is the last resort.
1) Close down Illy and open again;
2) Restart the computer (you may do that up to 3 times);
3) Close down Illy and press Ctrl+Alt+Shift/Cmd+Option+Shift during startup (easy but irreversible);
4) Move the folder (follow the link with that name) with Illy closed (more tedious but also more thorough and reversible);
5) Look through and try out the relevant among the Other options (follow the link with that name, Item 7) is a list of usual suspects among other applications that may disturb and confuse Illy, Item 15) applies to CC, CS6, and maybe CS5);
Even more seriously, you may:
6) Uninstall, run the Cleaner Tool (if you have CS3/CS4/CS5/CS6/CC), and reinstall.
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