 <p>The standard creation of folders in Windows XP is <a href="http://msdn.microsoft.com/en-us/library/aa363855%28VS.85%29.aspx" rel="nofollow noreferrer">CreateDirectory</a>. This is a Kernel32 function. </p> <p>Since you're referring to "New Folder", and expect to have UI, I think you are actually refering to Explorer, the default shell for XP. "Ne Folder"is a predefined entry in the context menu, and that list is extensible. However, you'll notice a divider line. "Folder'and "shortcut" are built-ins; the other entries are configured. It would be trivial to add a "New Folder Structure" entry below the divider (ShellNew key in HKCR)</p>