When I transfer a picture from my camera into the Pictures library Windows 7 creates a new folder containing a duplicate picture file. Not sure if this is a bug in Windows or a problem with my Sony Viao. Any ideas?

I think I've managed to fix this... I noticed that the Folder Options were set to show hidden/system files. I've unselected this option and it seems to be ok now. I guess Windows must create temporary folders when doing stuff with photos. I also read somewhere thar Windows Live Essentials can cause a similar problem so I uninstalled it too. Not convinced that WLE was the cause of this but not sure...