A modification of Bill James' New Folder context menu script ( http://billsway.com/vbspage/ ), this script instead creates a "New File" item in the right click context menu of Directory Backgrounds. Upon running the New File item, you will be prompted for a filename that defaults to "new.txt". Once a valid filename has been entered (not an existing file) the script will then create the file. This allows the filename to be chosen in the dialog before any file creation has been executed. This has been tested to work on Windows 7 but may work on Vista as well.

Make the code below into a vbs file in the location you want it to be installed in (eg. C:\Windows\NewFile.vbs). To install the context menu item, run the vbs file. To uninstall the file, run the vbs file again.