Hi Ravi
newfolder.exe is a worm - looks like you have an infected PC that is playing up.
You need to boot up your PC and tap the F8 key before windows starts...
From the list that appears, choose: "Safe mode with Networking".
Go to AVG website and download their two Products:
-AVG Anti-Virus Free Edition 7.5
http://free.grisoft.com/doc/downloads-products/us/frt/0?prd=aff
-AVG Anti-Spyware Free Edition 7.5
http://free.grisoft.com/doc/downloads-products/us/frt/0?prd=asf
Then, after installing, run both programs, still in safe mode. This should clear your PC out...
then re-boot. If you're still having trouble you will have to copy all your files to somewhere (CD, DVD, USB or other disk). Re-install windows, install the Anti-Virus & Anti-Spyware products as above (no need for safe mode after a re-install), then you MUST SCAN ALL YOUR DOCUMENTS WITH THE AVG software BEFORE you copy them back to your PC as there may be some infection on those files.
After 1 month AVG, like all the other software out there, will start whinging that you pay some cash (about 20 pounds for a year)... I recommend it as you wouldn't have had all this hassle in the first place..!
Good luck
Cheers
knobby, November 2007