One of the most irritating bug still present in Windows 7 is explorer not auto-refreshing when creating a new folder or copying/moving/renaming a file. The apparent cause to this problem is when you map network drives in My Computer. Turns out the fix is quite simple (or at least it worked for me):

1) Open My Computer and click Organize > Folder and Search Options

2) Under the View tab, uncheck the Hide protected operating system files (recommended) option.

3) On your desktop, you should now see 1 or more Desktop.ini files. Delete all of them (no, it won’t break your system, they are auto-generated).

4) Reboot your computer. Problem solved!

Note: I still get the bug when copying or moving files from a network drive but anything done locally on the computer seems to work again.
You might want to re-check that setting in Folder and Search Options once you’re done.