Creating a new folder or file using Explorer in Windows 7 does not show up in Explorer until Refresh or F5 is pressed
Deleting the ShellIconCache usually does the trick (Vista and lower). Locate C:\WINNT\ShellIconCache (it's a hidden file), delete it and reboot.
In Windows 7, this file seems to have been renamed to IconCache.db and is found under C:\Users\UserName\AppData\Local.
Using Windows Explorer to delete the hidden file IconCache.db in %localappdata% which is usually C:\Users\UserName\AppData\Local works in Windows 7.