I've noticed on Windows 2000 and XP that the folders do no update, even pressing F5 won't help. The only way is to close the window and reopen explorer or I click on a file in the file list and then the folder list gets updated.
I had the SAME EXACT problem about a month ago. I have one machine running as a 'download box' and out of the blue if I did anything (ie. create a folder, delete a file, etc.) on a folder on that machine the window WOULD NOT UPDATE! If I renamed a folder, it would behave like I didn't actually do it! I never figured it out and I've since restaged both machines - but yer not crazy, the problem exists!