Error message 16389 when creating a new Windows Explorer Library on Windows 7 or Windows Server 2008 R2

Applies to: Windows 7 EnterpriseWindows 7 ProfessionalWindows 7 Ultimate More

Symptoms


When attempting to create a New Library on Windows 7 or Windows Server 2008 R2, the user may receive the following error:

Unable to create the file 'New Library.library.ms'
File system error (16389).

Cause


This will occur if the following policy is in effect on the system:

User Configuration/Administrative Templates/Windows Components/Windows Explorer/Prevent users from adding files to the root of their Users Files folder'

This policy is designed to prevent users from creating items at the user's folder root. By design, this includes libraries.

Resolution


The workaround is to disable the policy "Prevent users from adding files to the root of their Users Files folder”. This policy can be found using GPEDIT.MSC at the path listed in the Cause section.