My SD600 will no longer take photos and a "create folder" symbol is shown?

I think the "new folder" icon is preventing new photos from being taken. I've tried to create a new folder but it isn't working (or I'm doing something wrong). Is there a way to reset the camera? I've tried to hold the menu button for 5 seconds, as mentioned in another thread, but had no luck there either?

Yes, there is. This is a fairly easy procedure which involves either going into your setup menu and choosing "reset" (or intialize), holding down the menu key for 5 seconds (which you've already tried), or, removing the batteries for a few minutes. It may be that the firmware loading got corrupted and the camera just needs to be "rebooted," which is something that turning it on/off won't accomplish. But after which, you should have the camera reset to factory default settings.

Another tip is to go to Canon's website and look for firmware updates. Download and install them.

Is it trying to create a folder on the camera, or on the memory card? If it's on the memory card then I'd download the photos you want to save, then reformat the card and start from scratch.

I agree with Brenda. Regardless, get your photos off and reformat. But this also leads me to a point about memory cards and why you need more than one. Reason being, insurance. Any memory card can fail or become corrupted. And when you're on vacation the last thing you want is to lose the opportunity to take pictures until you can recover that media card with a software utility. If your card goes bad, swapping another one for it at that moment is of advantage so you can keep taking pics. Then, later when you're in front of your PC, you can use a utility like "F-Recovery" to get back your pictures and recover your card.

No need to lose the moment because you relied on one card one when several can solve that problem.

Thanks for the suggestions. Unfortunately I had no luck solving the problem. I downloaded all the images from my camera to my hard drive, so that I could reset / reformat my camera and memory card. I swapped out my memory card and the File icon is still showing, so it looks like the problem is with the camera and not the card. I tried resetting the camera settings from the menu function and no luck there either. I took the batteries out overnight, and lastly the Canon's website says there is no firmware updated available for the SD600.
I you have any more ideas I'd love to give them a try.