THIS WORKS !! *****
Try this and email me if you succeed. I will be happy to know I was on some help.

****–solution– ******
open your registry by clicking on start -> run ->regedit

and remove the following entries.

HKey_usersSoftwareMicrosoftWindowsCurrentVersionExplorerShell FoldersPersonal

HKey_usersSoftwareMicrosoftWindowsCurrentVersionExplorerUser Shell FoldersPersonal

enjoy,
snehal