first of all thanks Christopher for the info.........
           No,we are not trying to add a new entry in to "New" menu windows explorer context menu but we are implementing explorer like a virtual folder in windows vista and while creating "New" menu along with our customized context menu it is not loading default sub menu items("New Text document", "New Word Document" etc as shown in snapshot Windows_contextmenu.jpg (http://www.driveway.com/c6f1j0y1y3))  for the "New" menu of our customized explorer as shown in snapshot customeized_contextmenu.jpg ( http://www.driveway.com/h3q9s0x9q2 )

 We are creating the shell folder using SHCreateShellFolderView() routine.

Thanks,

Krishna Rao