I wrote it for windows Xp, sorry I don't have a vista machine to work with.

Boliboli, about your comment; You need to change your folder options so only the name of the folder is shown in the window's title I believe. I deleted the source long ago so I'm not sure but give that a try.

For me I was able to use the script in any folder with no problems, but my computer is also the computer the program was designed for :/

The delay of your double-click isn't relevant, it shouldn't have any effect.

Nothing should be taking you to the folder above because the only keystrokes that get sent to the explorer window are {AppsKey} (opens the right click menu) w (selects New>) and {enter} (selects new folder)

I can make it so you can double click slower if needed.

The context menu shouldn't show for more than 1/4 of a second.
I can try increasing the delays in the script if you think your computer is slow.
(The time between opening the context menu and sending the keystrokes - if your computer lags when right clicking, the script won't correctly create a new folder - I might try a new approach later)

Compiled script uploaded.
- The file name is selected after it is created so you can easily rename it
- You can choose if you want the script to create text files or folders (text files are created by default - see the Config.txt file thats in the zip)

Sorry but I couldn't figure out a way to work with the desktop (wasn't sure how to detect if a file was or wasn't selected on the desktop)