Originally Posted by
stanav
I've run into this same problem recently (or at least I think it's the same based on your description). It turned out that the problem relates to Windows Media Center AND HomeGroup. If you add those directories in any of WMC libraries (Music, Movies, Videos, Pictures...) AND you also share the folders with your HomeGroup, the problem pops up. To verify this, open an effected folder in windows explorer and right-click on any empty spot in it to show the context menu. Move the mouse pointer to the "New" option. If the only thing you see is "Folder" with an UAC icon (instead of a long list of stuff) then this is the same problem as the one I've had