Creating a Folder and Populating it

[teachMeExcel]

Hi!. I am using a excel 97 and have a macro that generated hundreds of work books on a single run. Due to the extensive number of work books, i would like to save all of this into a single folder. I able to create a folder on my macro by using the "MKDIR" command, however I can not seem to save any of my workbooks on that newly created folder, do i have to release that folder first. I get a message saying "Miscrosoft Office Excel cannot access the file (Folder).

The command i am using to save the files:
ActiveWorkbook.SaveAs Filename:=Output_Name, _
FileFormat:=xlNormal

The Output_Name contains the full path including the new folder name and the workbook name.
What do you think i am doing wrong or not doing at all?