Well, Tabeer, it does sound like a malicuous program caused this.
First, do you have an anti-malware program? If you do - run a full scan of your PC.
If you don't - get such a program and scan. In any case, you need such a program at all times, so malware doesn't run wild.
Second, it seems that this malware might have messed up with registry entries
and that would explain why those files are created and keep getting back.
Third, if the anti-malware scan doesn't fix your problem, or you are somehow prevented from downloading such - write back.
I will try to guide you to what you should do next.
You could also go to your Task Manager and see if you have some process running like: "newfolder.exe".