Windows ME question\problem

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GfK
 #1
Go into regedit and find your way to the following:

HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New\

Set the 'default' value to:

{D969A300-E7FF-11d0-A93B-00A0C90F2719} (including curly brackets!!)

Back up your registry first if unsure.

By the way - this can also happen in WinXP as its an Internet Explorer issue. The fact that WinME is crap has nothing to do with it.