I'm missing "NEW" from all file (and right click) menus

Fellow techs,
I'm having this problem on my own PC (one of them).
I'm running Win98 SE on a P3 933. I just noticed that when I try to create a new
folder (FILE menus, NEW or right click drive root and choose NEW), that NEW
isn't listed anymore. Its the damnest thing. The same thing happens in
any folder or any drive root, I no longer have the ability to create a
NEW folder or file (I can always create a new file by using a program, i.e.
WORD, EXCEL, etc, but I can't select NEW, then select WORD from the program
list.
Can anyone help me with this please. I looked in folder options, I optimized
the system (registry clean, defrag, etc)

Thanks in advance,
DCO

 

Maybe this article can help:

http://support.microsoft.com/kb/q180257