Okay so I just tried to add a new network location in the My Computer.
I set the network address as \\MYLAPTOP\ but the program didn't let me do that because I need to specify a folder. I don't want to specify a folder because I just want to use the root folder. So I then typed it as \\MYLAPTOP\\ with an extra slash at the end. The shortcut was made but it didn't work so I tried to remove it.
Now every time I press "delete" on the shortcut Explorer.exe crashes and restarts. I tried this in safe mode with and without internet access but it always crashed.
Now I'm just looking for a way to manually delete the icon through registry or some other editor. Any tips?
EDIT: This problem is a bug in Windows 7. It is still unfixed and you can't get rid of it without reinstalling Windows.