Windows XP create new folder slowness

Hello,
I'm having trouble creating a new folder.
Right clicking or going to File, New, the arrow turns into an hourglass and
for at least a minute, then I can create a new folder. This has been
happening for a while now but I don't remember it always being this way.
I tried to find the broken shell using shellExView but the only thing that
shows a problem is the google toolbar in IE. I disabled that rebooted my PC
and still get the same slowness/delays.
Any other suggestions?