Cool, thats good. Try seeing if the location is the problem, try it in different locations (I.E. Where are you trying to create the folder, and can you try somewhere else and see if it works?)
Then, also try it in safe mode, see if that works. (Safe Mode doesn't support networking)
Come back with the findings.
And now I must rest. Good luck on your search. I wish teamviewer could be used in this instance. I'll be back in 8 hours