Is it just My Documents?
What technique do you use to create a new folder?
Are you sure it is not being created further down the list?
Is it just Local or Public folders as well?
Have you tried re-starting your computer?
What have you changed on the system since it was last working correctly?
Have you tried System Restore?
The more details you can give (And what you have tried) will make it easier to narrow the problem down.
Live entertainment, Real Ale, Great Scenery, Great Beaches, why would anyone want to live anywhere else (I�m definitely staying put).