I have an iMac with OSX 10.9.2. When I create a New Folder on the desktop, it creates a new empty folder. My sister just got a new iMac but on hers, when we create a "New Folder" (with any of the methods available to do so) it creates a new folder but inside are ALL the other folders on the desktop. And inside all those folders are ALL the folders on the desktop. Did some preference get turned on? I checked System Prefs and found nothing relevant. Any one know what's going on?