To resolve this issue, use Registry Editor to verify that the registry key listed below has the value listed, and if needed, edit the value to match the value listed.
Note: This registry entry only exists if the Windows Desktop Update component is installed. If the Windows Desktop Update component is not installed, add the registry entry and (Default) value.
Key:[HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New]
Value Name: (Default)
Data Type: REG_SZ
Data:{D969A300-E7FF-11d0-A93B-00A0C90F2719}
More info: http://support.microsoft.com/support/kb/articles/q180/2/57.asp
