Steps to replicate:

1.     Run the DSUpload tool.

2.     Click the Save Job Config button.  The Save Configuration File window displays.

3.     From the Save In menu, select My Documents.

4.     Click the Create New Folder button (icon that looks like a folder)

5.     The button is grayed out and impossible to push
  
NOTE:  If you click the Save Status Log button the same symptom will occur. 

Workaround:

Option 1:  Manually create the Folder in Windows Explorer

NOTE:  This solution will need to be done before launching the dsuploadgui.

a.     Open Windows Explorer

b.    Select My Documents

c.     Click File menu item and select New | Folder

d.    Type the name of the new folder you would like to create

e.     Close Windows Explorer

f.      Open dsuploadgui

g.    Click the Save Job Config button.  The Save configuration file window displays.

h.     From the Save In: menu select My Documents.

i.      Select the new folder

Option 2:  Run a command line utility to resolve the issue (preferred)

a.     Open a Command Prompt window

b.    Type attrib -r "%USERPROFILE%\My Documents" and press Enter.

NOTE:  This command should only need to be run once.

NOTE:  The workaround (attrib –r “%USERPROFILE%\My Documents”) doesn't work if My Documents is redirected to a network share.

AR0001323 Closed (unable to fix) (Updated:  May 11th, 2009)