There isn't a shortcut to the folder you're in, actually IN the folder you're in is there? (I cant really describe it)....
For example, say you're working in C:\whatever - there isn't a shortcut to C:\whatever IN that folder is there? The same problem has happened to me a few times and that is usually the cause. If there is a shortcut in there then just deleting it should help...
Oh and I have no idea how the shotcut got there either