Solved: Cant Create New Folder?

I cant create a new folder in WINDOWS 7. Logged in as administrator. When I click on a blank spot on the screen on C:\ and scroll down to NEW...its says EMPTY. I attached a usb hard drive to this machine and moved files onto the USB drive, but when I need to make a new directory on the external hard drive, it does not even have a new folder option...click on a blank spot on external USB hard drive shows these options:

SHORTCUT
Contact
All sorts of document options ( Open spreadsheet,text,etc.)
Compressed folder ( zip )
Briefcase

Thats' all that is listed on the NEW/ when hovering over...

How do I get control to make directories on USB EXTERNAL HARD and C;\ Hard drive?