Well it's not really about the current directory, it's about a file named foo 
of type other than "folder" that lives in a folder bar.
In that same folder I want to create a folder called foo. This is not possible 
althoug the type of the two files are not the same..

I guess this is still the expected behaviour although I was a bit
shocked when I saw it :-)

cheers,

cl

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impossible to create folder with existing file of same name
https://bugs.launchpad.net/bugs/546891
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