Creating New Folder - Very Long Wait Time

It could be RAM glitches - run Memtest86+ for a couple of passes. Note the info about if you have 4GB or more RAM.

From another forum - a bug in Windows 7!
Install the Update KB980408 (The April 2010 stability and reliability update for Windows 7 and Windows Server 2008 R2 is available )
This update fixes the following issue:
Windows Explorer may stop responding for 30 seconds when a file or a directory is created or renamed after certain applications are installed.
I think this will solve your issues.
Download:
32Bit:
Download details: Update for Windows 7 (KB980408)
64Bit:
Download details: Update for Windows 7 for x64-based Systems (KB980408)

I have this problem and it makes me crazy... I downloaded the patch related to my OS but it said the update is not applicable to your computer ... I really need a solution to solve this damn problem...

This fixed my iTunes after beeing frustrated about iTunes since I changed
to WIN7 x64 2 years ago. I ran this fix today to fix a problem with it taking
15 seconds just to make a folder on the desktop. (folders inside folders was
no problem) The fix I used was this one: MicrosoftFixit.WinFileFolder.Run.exe.
I just ticked all 4 options, and after my PC restarted everything was fine, even
iTunes!! (My icons on the desktop got very big after the fix, but this can be
fixed by right-clicking on the desktop, go to view, and choose "Small icons")
Hope this helps at least some of you!
Cheers! :)