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failed to create new folder name

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Failed to create new folder or file-name

A folder and a file cannot have the same name. If you already have a file called C:\TEMP\FRED, you can't make a sub-folder of C:\TEMP called FRED. Choose a new name.

Or you don't have rights to create files in that folder. Or something went wrong while WordSmith was trying to write a file, for example the disk was full up.