Hi Nancy,

It is possible that this registry problem requires some additional user action.

Here are two solution you can consider:

Solution 1:

- Open your Windows Explorer and navigate to Pictures
- Click "Organize" in the upper left corner
- Click "Folder and Search Options"
- At the top are 3 tabs, "General, View, Search"
Click on "View"
- Go down to the "Advanced Settings"
- Look for the check box that says "launch folder windows in a separate process"
- Make sure this checkbox is selected and then click the "OK" button
- Now go back into the Pictures library folder, right click an empty area, click on "New" and check to see if the folder option is available.

Solution 2:

Download, extract and run the "restore" fix from here:

http://www.sevenforums.com/attachments/tutorials/265802d1367092273-new-context-menu-remove-restore-default-menu-items-folder_new_context_ment_item.zip

When prompted, click OK to merge the contents of the fix with your Windows Registry.

Good luck,

James