After Mountain Lion installation a new folder does not open

After installing Mountain Lion when creating a new folder in my home folder the new, empty folder will not open correctly. When double clicked, the new, empty folder shows the other folders in my home folder not an empty folder. The icons displayed also get slightly smaller.

If the newly created folder is clicked once it remains selected until a new selection is made in the sidebar. Doing this also does not allow any other folder in the home folder to be selected.