"New" command disappears in Context menu.

This problem has been traced to installing a new nVidia driver

http://aumha.org/regfiles.php
"""If the NEW command disappears in Windows Explorer, or in the Desktop’s context (right-click) menu."

This site has a registry patch for this problem.
http://www.windows-help.net/windows95/troub-44.shtml

http://www.jsiinc.com/SUBB/tip0700/rh0715.htm
http://www.wintrouble.net/discus/messages/63/2011.html?979333866
http://www.kurcula.com/index.php?p=170