How do you create a new file in Bridge CS4?

For 12 hours I have been trying to create a new folder in Bridge  I am using the book Adobe Creative Suite 4 Design Premium Digital Classroom.  I am only on step five of "Using folders in Adobe Bridge"(pg. 5) and I cannot get create a new folder to work.  Both the icon in the upper right corner and the file > New folder are ghosted.  Does anyone know what could be going wrong?  I have followed all of the instructions and I have even reinstalled the CS4 Design Premium software.  Anyone?  Bueller, Bueller?
Thanks for any advice.

It sounds like you are trying to create a folder on a CD, DVD or a drive to which you do not have write permissions…

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