Moving Folders Causes Error

I have a problem in explorer that whenever I move a folder into another folder, explorer prompts:

If I click cancel, nothing will happen, the operation is cancelled.
If I click Try Again, the operation will proceed, the folder will move.

This isn't really a problem, but a HUGE nuisance.

Windows Seven Ultimate 32-Bit.

Also, Hello w7forums!!!

Edit:
Renaming folders gives errors.
Moving folders into the recycle bin is fine, no errors.
Moving files is fine, no errors.
Renaming files is fine, no errors.

Edit2:
I found an error using registry mechanic:

Highlighted Value Is missing or invalid:
HCKU\Software\Microsoft\Windows\CurrentVersion\Explorer\FileExts\Directory

Please Advise as to what you have here!!!

Please Help!

Hope this helps

Didnt help =(

Are you using the RTM build? Also, when did this start, was it after you ran some registry cleanup tools?

It might be worth doing a system restore to roll back a couple of days if it was only recently.