vaxure.....I just came across this .....it seems to be related.....
I've seen the same thing in ME - in fact, it just happened again. From my recollection, it's from a corrupt registry key... probably from an improperly installed video card.
You can either do it manually using regedit, or use a patch - one can be found at:
http://aumha.org/downloads/new.zip Procedure:
1) Go to the start menu, run 'regedit' (minus quote marks), then go to 'file', 'export', and find a place to put the backup. Always a good idea.
2) Download the patch above, unzip, and double-click the registry file inside, and it'll be patched. Try creating a new folder then.
Maybe........let us know
dl65