New folder button not creating new folders on desktop

[coch]

I have this problem that appeared a few weeks ago. You know the new folder button that you can find in the Open/Save dialog of various applications, well it stopped creating new folders on my desktop. I press the button and it looks like something is happening because my cursor tempporarily gets "busy", but the folder never gets created. The button does work when I press it to create a folder in a place other than my desktop. Right clicking and choosing New | New Folder does work on desktop though, either right clicking on desktop or from the application Open/Save dialog.

Any clues as to what might be going on?

I have a brand new PC, WinXP Pro SP1, formatted and installed only a month and a half ago.

[snowmonkey]

I have no idea what has happened at the mean time neither I know how to fix it, but I would suggest to run the restore program and put it back to the way it was a week ago.



cheers

[john66]

Before doing a system restore (and loosing any softwre youve installedetc)

Iwould adivise you run a registry cleaner healer.
also do a virus scan and spyware scan

if no good then maybe consider system restore

[coch]

Thanks for your replies, unfortunately, nothing worked, I still have the same issue.

Well, I guess I have to reformat (again...)