Where is my New Folder option?

I bought and dowloaded Lion, but I noticed that I can no longer select New Folder in the Finder File Menu.  The only option I can select is New Smart Folder.  Does anyone know why this change occurred and how I can create a New Folder that is not a Smart Folder?
Thanks,
Kelly Grace

Thanks ckuan. 
I found my 'operator error'.  I hadn't noticed that when I opened Finder it automatically opens at the top of the list which now is headed by All My Files instead of Desktop.  As soon as I selected Desktop the New Folder option became available.
I'm not sure, but I think the change in my Favorites List is a result of Lion as I don't recall seeing All My Files or Air Drop in the list previously.
Thanks for the shortcut.

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