Sometimes when you create a folder on the desktop, Windows 7 does what you ask, but aks bugs out, asks a stupid question, and then renames every file on your desktop.
The bug is that the folder name gets applied to every item on the desktop. The silly part is that it freezes the desktop while it warns that you can’t rename the Recycle Bin.
The error text is:
An unexpected error is keeping you from renaming the folder. If you continue to receive this error, you can use the error code to search for help with this problem.
Error 0x80004001: Not implemented
You can undo the bug at the expense of losing the name of the new folder, so it’s not disastrous. It’s just stupid.
Filing this here because Microsoft I don’t know where to file public bug reports for Windows 7.
When I did search for help on the error code, I found a Technet post describing the same issue. No reason or solution was proposed.