Go to the link below and scroll down to line 286 (left column) and click on "Restore the "New" Context Menu to Default" to download a reg file fix. Save the REG File to your hard disk. Double click it and answer yes to the import prompt. It should correct your problem.
Okay,people. I need some help here. See i've been using clean up utilities 2007 to give my laptop a good enema to get it running well, and i think i've messed with a setting i shouldn't have. now when i right click in any folder it doesn't give me the option to create a new folder; all it does is give me the option to change the way i want to view the folder (tiles, thumbnails, etc etc..) and graphic options (eg the desktop gives me the ARRANGE ICONS BY option, but still no folder making option. when i switched on the common tasks option again, I DO get an option to create a new folder, but when i try all i get is the error chime, and--you guessed it--no new folder. what have i screwed with? I've tried to backtrack but i can't find any setting that will fix this and it's getting annoying now