KB: The "New" option in the shortcut menu is missing for the root folder of a redirected drive in Windows Server 2008 R2 (2796764)

A new hotfix has been released (2796764) to fix the issue where the “new” option is missing in the context menu on a redirected drive using a Remote Desktop Session. Have been running into this issue too, glad that it’s fixed.

Root of a redirected drive:

Subfolder:

“…Consider the following scenario:

• On a client computer, you open Remote Desktop Connection and enable drive redirection.
• You create a Remote Desktop session to a computer that is running Windows 7 or Windows Server 2008 R2.
• You browse to the root folder of the redirected drive in the Remote Desktop session.
• You right-click an active region to display the shortcut menu.

In this scenario, the New option is missing on the shortcut menu…”

Source and download: http://support.microsoft.com/kb/2796764/en-us?sd=rss&spid=14134