diff --git a/reactos/dll/win32/shell32/shv_bg_cmenu.c b/reactos/dll/win32/shell32/shv_bg_cmenu.c
index a6881fff31c..d5a4ff8afd7 100644
--- a/reactos/dll/win32/shell32/shv_bg_cmenu.c
+++ b/reactos/dll/win32/shell32/shv_bg_cmenu.c
@@ -170,6 +170,8 @@ static ULONG WINAPI ISVBgCm_fnRelease(IContextMenu2 *iface)
 * ISVBgCm_fnQueryContextMenu()
 */
 
+VOID INewItem_SetParent(LPSHELLFOLDER pSFParent); /* FIXME: remove that, shouldn't be needed */
+
 static HRESULT WINAPI ISVBgCm_fnQueryContextMenu(
 	IContextMenu2 *iface,
 	HMENU hMenu,
@@ -225,8 +227,7 @@ static HRESULT WINAPI ISVBgCm_fnQueryContextMenu(
      * FIXME
      * load other shell extensions
      */
-#if 0    
-    if (SUCCEEDED(INewItem_Constructor(This->pSFParent, &IID_IContextMenu2, (LPVOID*)&icm)))
+    if (SUCCEEDED(INewItem_Constructor(NULL, &IID_IContextMenu2, (LPVOID*)&icm)))
     {
         if (SUCCEEDED(IContextMenu_QueryContextMenu(icm, hMenu, 10, idCmdFirst, idCmdLast, uFlags)))
         {
@@ -238,7 +239,10 @@ static HRESULT WINAPI ISVBgCm_fnQueryContextMenu(
             This->icm_new = NULL;
         }
     }
-#endif
+
+    /* Prepare 'New item' shell extension */
+    /* FIXME: shouldn't be needed... */
+    INewItem_SetParent(This->pSFParent);
 
     if (This->bDesktop)
     {
diff --git a/reactos/dll/win32/shell32/shv_item_new.c b/reactos/dll/win32/shell32/shv_item_new.c
index cf0eecb1c0e..c49c8ac4468 100644
--- a/reactos/dll/win32/shell32/shv_item_new.c
+++ b/reactos/dll/win32/shell32/shv_item_new.c
@@ -756,8 +756,8 @@ INewItem_IContextMenu_fnHandleMenuMsg(IContextMenu2 *iface,
 	                     LPARAM lParam)
 {
     INewMenuImpl *This = impl_from_IContextMenu(iface);
-    DRAWITEMSTRUCT * lpids = (DRAWITEMSTRUCT*) lParam;
-    MEASUREITEMSTRUCT *lpmis = (MEASUREITEMSTRUCT*) lParam;
+    //DRAWITEMSTRUCT * lpids = (DRAWITEMSTRUCT*) lParam;
+    //MEASUREITEMSTRUCT *lpmis = (MEASUREITEMSTRUCT*) lParam;
 
 	TRACE("INewItem_IContextMenu_fnHandleMenuMsg (%p)->(msg=%x wp=%lx lp=%lx)\n",This, uMsg, wParam, lParam);
 
@@ -789,11 +789,11 @@ static const IContextMenu2Vtbl cmvt =
 	INewItem_IContextMenu_fnHandleMenuMsg
 };
 
+static INewMenuImpl *cached_ow;
 HRESULT WINAPI INewItem_Constructor(IUnknown * pUnkOuter, REFIID riid, LPVOID *ppv)
 {
     INewMenuImpl * ow;
     HRESULT res;
-    static INewMenuImpl *cached_ow;
 
     if (!cached_ow)
     {
@@ -814,13 +814,17 @@ HRESULT WINAPI INewItem_Constructor(IUnknown * pUnkOuter, REFIID riid, LPVOID *p
     }
 
     TRACE("(%p)->()\n",cached_ow);
-    if (cached_ow->pSFParent)
-    {
-        IShellFolder_Release(cached_ow->pSFParent);
-    }
- //   cached_ow->pSFParent = pSFParent;
- //   IShellFolder_AddRef(pSFParent);
 
     res = INewItem_fnQueryInterface( cached_ow, riid, ppv );
     return res;
 }
+
+VOID INewItem_SetParent(LPSHELLFOLDER pSFParent)
+{
+    if (cached_ow->pSFParent)
+    {
+        IShellFolder_Release(cached_ow->pSFParent);
+    }
+    cached_ow->pSFParent = pSFParent;
+    IShellFolder_AddRef(pSFParent);
+}