STEP 1
1.) Go to the following link:
2.) Scroll down to: Default Windows 7 File Extension Types:
3.) Select the following & download: txt – Text document files. The default program is Notepad
4.) Follow the instructions included in the .zip folder, then REBOOT your system when completed.
NOTE: This is will change a small part of your registry. Nothing significant to system operations. However, remember to make a backup of your registry in the event YOU make a mistake by not following the instructions.
The website states this will fix the problem; however, this fix by itself did nothing to add the New Text Document to my context menu. This is okay though as it is an important 1st step to fixing the problem.
STEP 2
Start the registry editor (regedit.exe)
1.) Move to:
2.) HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers
3.) Delete the New menu that already exists.
4.) From the Edit menu select New – Key and enter a name of New. Press Enter
5.) Move to your new New key
6.) Double click on its default value and enter the following (Copy and paste is best)
7.) {D969A300-E7FF-11d0-A93B-00A0C90F2719}
8.) Click OK
9.) Close the registry editor
10.) REBOOT your system now. You should now have a New item on the desktop context menu.