On right click in File explorer (Nautilus) this happens (options are 'create new folder', 'create new document', etc). It does not happen on applications such as Firefox, Writer, etc.
I know this happened after I made I clean install to 12.04 but I do not know if it happened since the install or after.
Even though the option is greyed out I can still paste if I click it, or Ctrl+V.
Any idea?