My sibling's laptop is running windows 7 x64.
The torrents folder in Documents doesn't show the New Folder button. ctrl+shift+n doesn't work either.
I tried EVERYTHING here: Can't create new folder from anywhere in Windows 7
..but nothing worked. As with the OP there, running the .reg file brings an error that says something about not being able to change the registry value while something is using it. I removed one entry at a time in the .reg file until I narrowed down the ones that were causing the problem, which were in HKEY_CLASSES_ROOT/CLSID. The only different reg value, however, was in HKEY_CLASSES_ROOT\CLSID{11dbb47c-a525-400b-9e80-a54615a090c0}\InProcServer32, for which the default value was %SystemRoot%\system32\explorerframe.dll and the value trying to be set ExplorerFrame.dll. I'm on windows 7 32bit and that's the same value I have for the entry, so I doubt that's it.
The only thing I think is slightly off is that there is a user group with a strange name that only has execute and read access, and I can't grant it full control. Every time I try, it acts as if it works, but doesn't change it. I tried booting into safe mode and changing it, but it did the same thing.
It is the folder where utorrent puts any new downloads, so it's possible utorrent did something, though that's never happened to me before.
edit:
I had renamed the folder to something else to avoid the problem, and then went onto my own computer to try to figure out what was wrong (I personally don't like using the touchpad on laptops). While searching, my sibling starting watching a movie. I minimized the movie and saw that the same thing had happened to the folder I renamed. Also changed was the file layout. It showed the different days and the files modified on those days.
So, I was able to fix it by doing:
Clicking Organize Layout Menu Bar
On the menu bar clicking View Arrange By Folder