Windows Explorer - Problem creating new folder

I have a computer that has windows xp pro installed and recently it has developed a problem that I don't understand or know how to fix. I was hoping someone out here could help me.

Problem:
When in Windows Explorer, Right click on open space in the right half of the window, a context menu pops up. As soon as the cursor pauses on the "New" menu on this context menu, Explorer hangs with the hour glass showing. I have waited up to 10 minutes for it to come back, but it doesn't
So far the only answer I have is to end task on Explorer and not hover over the "New" command in that context menu. This makes it hard to make a new folder :-)

Has anyone seen this behaviour before or have any idea why it might be happening?

Thanks in advance!

Paul Hermans

yeah I had that problem but it would only hang for about a min. I ran sfc /scannow from the run box then reran sp1

Have you tried it the other way,(In Windows explorer go to File > New > Folder),or do you get the same problem ?

Try Using Command Line ( Start->Run->CMD->press Enter).
When You Are On CMD Line, select Folder where you want to create new folder in by "cd C:\<folder>" and then press Enter.
After That Write "MKDIR <dir name>" .
If You Need Any Info About CMD Line Functions, Just Write Help :D :D

All, Thanks for the ideas.
I tried all of the above and the onlyone that works well is the MKDIR command.
I guess I'll just rebuild the machine next week. Probably faster than trying to figure out what went wrong.

Thanks