RESOLUTION
WARNING: Using Registry Editor incorrectly can cause serious problems
that may require you to reinstall Windows 95. Microsoft cannot guarantee
that problems resulting from the incorrect use of Registry Editor can be
solved. Use Registry Editor at your own risk.
NOTE: For information about how to edit the registry, view the Changing
Keys And Values online Help topic in Registry Editor (Regedit.exe). Note
that you should make a backup copy of the registry files (System.dat and
User.dat) before you edit the registry.
To resolve this issue, use Registry Editor to verify that the registry key
listed below has the value listed, and if needed, edit the value to match
the value listed.
Registry key:
HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New\
(Default)
Value for (Default):
{D969A300-E7FF-11d0-A93B-00A0C90F2719}
NOTE: This registry entry only exists if the Windows Desktop Update
component is installed. If the Windows Desktop Update component is not
installed, add the registry entry and (Default) value.