HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New
(Default)    {D969A300-E7FF-11d0-A93B-00A0C90F2719}            << String

Does your Registry have that Key? If not...

.......Start...after this line............................
REGEDIT4

[HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New]
@="{D969A300-E7FF-11d0-A93B-00A0C90F2719}"

.......End....before this line, including the Blank/Null lines..........

Copy/paste what is between those lines into a Notepad window. Name the
file "FixNew.reg". It must have that file type ".reg". You may need to
put the name in quotes in the Notepad "save" box, so that it won't
append ".txt".

Once the file is created, click it & it will merge into the Registry.
That is default behavior for a file with a type of ".reg". That is why
one should not willy-nilly click those.

To alter the default behavior: "START, Settings, Folder Options, File
Types tab". Scroll to & click "Registration Entries", click the "Edit"
button, select "edit" in the window & click the "Set Default" button.
Now, when you click a .reg file, it will open in Notepad for
examination.
To merge it into the Registry, R-Clk it & select "Merge".