Hi Mary,

Please follow the below steps to make sure New Folder creation is working properly.

1. Open a Windows Explorer window by clicking on a folder
2. Click Organize
3. Click Folder and Search Options
4. Click View
5. Under Advanced Settings, select Launch Folder Windows in a Separate Process
6. Click OK

Sometimes, this issue can be solved through Folder Options.Now, click on an empty area, then click New, and see if Folder appears again. If not, we’ll have to apply a more technical solution.

First Registry Method

Open the registry editor. We have an article for more info on the Windows Registry, if this seems daunting. Remember to be very careful with what you do here.

1. Click Start
2. Click Run
3. Type regedit and press Enter
4. Click the little arrow next to HKEY_CLASSES_ROOT
5. Scroll down until you find Folder and click on it
6. Right click on each of the entries under Name and click Modify…
7. Here’s what each of them should have under Value Data.(Default) should contain Folder
   EditFlags should contain d2 03 00 00
   FullDetails should contain:
   prop:System.PropGroup.Description;System.ItemNameDisplay;System.ItemType;System.Size
   ThumbnailCutoff should contain dword:00000000
   TileInfo should contain prop:System.Title;System.PropGroup.Description;System.ItemType
8. After you’re done, click View, then Refresh to verify your changes. This should bring back the Folder menu when you right click or click New Folder.

This is the part of the Registry Editor you’re looking for.

Another Registry Method

If this doesn’t work, try clicking through the registry to the following folder:
HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New\
Under (Default), look for the following:
D969A300-E7FF-11d0-A93B-00A0C90F2719
If the above value is not present:

1. Right click (Default)
2. Click Modify…
3. enter the above text under Value Data

Modify the value with the text provided.One or both of these approaches should work for restoring proper folder functionality to Windows 7.

Regards,
Lokesh