symptom: when click on the "New library" button on the top of the folder, nothing happens.
also when right click on "Library" on the side bar and mouse over to "New", it says "empty" instead of "New library".
the cause is the missing of the registry code.
here is an article that describes how to fix it.
simply download the No.7 fix "to remove or restore library".
How to Remove and Restore the Default "New" Context Menu Items in Windows 7 and Windows 8