I am running XP PRO but i cant create folders in my docs,as soon as i try the system locks up,this happens when i try selecting new folder or by selecting file ,also when on the desktop i right click anywhere instead of the option to open new folder or shortcut again the system locks up.

See if the following applies to your situation:

See if this applies: Most Hotbar users can't right click New/Folder on the
desktop or Windows Explorer without system freezing and/or crashing.


If this is the case for you, there are two extensions that have to be
removed from this hive/key: HKEY_CLASSES_ROOT.


You will find a .dll and .jpg with an extremely long name. Those two need
to be removed to regain functionality, even though Hotbar has been removed,
it leaves these behind.


Or:


Hotbar - Windows Explorer/New/Folder Freezes (Line 206)
http://www.kellys-korner-xp.com/xp_tweaks.htm


If this is not the case try these suggestions:


Right click a blank area on the Desktop/Properties/Appearance
/Effects. In the Effects dialog box, click to clear the: "Use the following
Transition effect for menus and tooltips check box, and ok your way out.
And/or: Click the folder or file that you want (select it) before you
right-click it to display the shortcut menu.


Lastly run the two edits on line 157 from here:
http://www.kellys-korner-xp.com/xp_tweaks.htm