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Suddenly cannot create new folders

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Last response: in Windows 7
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I, too, am suddenly having the same problem after Windows 7 (64-bit) updates installed yesterday. When I right click on the desktop, I no longer see "create new folder" as an option. I do, however, still see "create new compressed folder). When folders are opened, "new folder" button is there at top menu, but when I click it, nothing at all happens; no error, no folder; nothing...
Any thoughts would be greatly appreciated,
Chris

I wish I had an answer for you. Sounds like you are having THE EXACT SAME PROBLEM I am having. It s soooooo frustrating!!!! I can't seem to figure out what is going on!!! I have tried evderything. I have been trying to solve this problem for the last four hours...uuugh!!!!
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