Windows 7: Problem creating a new internet shortcut on windows 7

hi,

Hoping someone can help me. Im currently having problems creating a new internet shortcut on windows 7. I have never had this problem before as i already have a number of different shortcuts for my favourite websites on my desktop. But, now when i try to create a shortcut an error comes up simply saying Explorer.exe Cannot create shortcut. The icon appears on my desktop, but when i click ok and cancel, another error box comes up saying "Item not found, could not find this item, This item is no longer located in c:, verify the items location and try again."
I dont know whats suddenly caused it and i have tried a system restore but to no avail.
Thanks

If you think the problem may be with explorer.exe, why not close it and then restart it?

To close and restart Explorer.exe first go into Task Manager, Processes, highlight 'explorer.exe' and click on End Process. (At this point, you may temporarily lose your Desktop.) Then, to restart explorer.exe go back into Task Manager, and in File section, select New Task (Run). Type explorer.exe (or C:\Windows\explorer.exe) in the Run box (it may be there already). Below the command, it should say: This task will be run with Administrator privileges. Click Okay.

If this doesn't solve the problem, you might try pinning the internet shortcut to the Start Menu, and then right-clicking on it and selecting: Send a shortcut to the Desktop. Once the new shortcut is successfully on your Desktop, you can delete the pinned Start Menu shortcut, if you wish.