I think By Disabling ATI Catalyst this problem can be fixed.
It is a device driver program for ATI Graphic Cards. Disabling it can improve FPS and can fix this error.
Click Start, point to All Programs | Accessories and select Run.
Type RegEdit and press ENTER.
Expand HKEY_CLASSES_ROOT -> Directory -> Background -> ShellEX -> ContextMenuHandlers.
Delete the key named ACE and then close the Registry Editor.