|william777, See post #3 in the thread at the link below. Do you by chance have ALZip installed? When you said that it named a folder "Swan" which is a type of bird it was a clue.|
Simply click New folder to create one ('directory' and 'folder' refer to the same thing). The default folder name will be a species of bird. New folder functions the same as New --> Folder in Windows Explorer. Using the ALZip New folder function is simply much faster and more convenient than the traditional Windows Explorer option - one click as opposed to clicking, repositioning your cursor, and waiting for a flyout menu.
This link is a Vista forum but would also be applicable to XP if you have ALZip installed.