Problems creating new folder

I suggest that you reboot to safe mode and then scandisk and defrag your hard drive and see what happens.

Another thing to try is your graphics acceleration. Windows 98 has lots of issues with graphics communication.

Either go to display properties, or System properties.
On the performance tab, select graphics and reduce video acceleration.
Restart your computer, and see if you can create folders now.

If this corrects the problem, you need to check for and install updated drivers for your mother board (AGP miniport driver if you have an AGP board) and Graphics card.

Check for a video BIOS update for the graphic card.

Q: How is the disk space on the computer?, and has this been happening always? or just started after loading a program or update?? Sounds like either your hard disk is filling up, or a conflict in programs. LMK

The best thing you can do is backup all your important data, reformat your drive and then reinstall your o/s.

I disagree with [gbee2000@msn.com], rather perform a system clean-up; ie. Delete unwanted files, empty Recycle-bin, do a thorough scandisk & finally degfrag the HDD.

GoodLuck.

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