Strange behavior when creating/ renaming folders and files

Hello All,

I am experiencing a strange issue on my new laptop PC (MCE 2005 SP2). If I try to create a subfolder (a folder within an existing folder), I cannot rename it right away - I type the name in, but after hitting "Enter ", it still says "New Folder ". I have to click out of the folder (go one level higher) and go back to see the new name. The same strange behavior occurs when I try to rename files.

It drives me nuts...

Any ideas?

 

Maybe not..... but is sounds similar to a recent MS update problem.
http://support.microsoft.com/kb/918165
http://www.wilderssecurity.com/showthread.php?t=127567