hey cod,
there are a couple of reasons for that problem
a) user rights
b) broken registry
i guess it could be the broken registry
i find this:
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\CLSID\{D969A300-E7FF-11d0-A93B-00A0C90F2719}
(Standard) REG_SZ Microsoft New Object Service
flags REG_DWORD 0x0
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Directory\Background\shellex\ContextMenuHandlers\New
(Standard) REG_SZ {D969A300-E7FF-11d0-A93B-00A0C90F2719}
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Shell Extensions\Approved
{D969A300-E7FF-11d0-A93B-00A0C90F2719} REG_SZ Microsoft New Object Serviceone of this entries must be available in the registry,otherwise you must create this key(s)
hope it works,if not i am sure sparta will help you

gumpie
ps: i have the information from a friends, who had the same problem