Windows gVim 7.3 is creating folders when opening a file

My setup is:

1. Windows7 SP1 (Enterprise)


2. gVim 7.3

Whenever I open a file, Gvim will create 2 folders in the same folder as the file is located. The folders' names are Files and (x86). This only started happening recently. Any idea what could be causing this?

My _vimrc files is as follows

set nocompatible
source $VIMRUNTIME/vimrc_example.vim
behave xterm
set ic
set nu
set ai
set noswapfile
set nobackup
source $VIMRUNTIME/colors/darkblue.vim
set expandtab           " expand tabs
set shiftwidth=3 
set softtabstop=3
set ruler       " show the cursor position all the time

source $VIMRUNTIME/plugin/linuxsty.vim