Since it's a registry fault which is causing your problem, you'll have to do a 'registry tweak' but, fortunately, there's a script available to so the job for you (so you don't need to do anything complicated yourself).
Download this file to your desktop:
http://www.sevenforums.com/attachments/tutorials/265802d1367092273-new-context-menu-remove-restore-default-menu-items-folder_new_context_ment_item.zip
(Don't worry; it's a trustworthy source!)
Double-click on the file.
In the window which opens, double-click on the entry which starts with 'Restore'.
Give approval to User Account Control to proceed.
Restart your computer.
Delete the file on your desktop.