What is the difference between Directory and DirectoryBackground?
One item I left off the list of special progids is
Directory is the progid for file system folders (a subset of
Folder which represents all shell folders, both file system and virtual). Closely related is
Directory\Background, which isn’t really a progid, but it is a place where shell extensions can register themselves. Specifically, it’s where context menu handlers can register if they want to appear when the user right-clicks on a blank space of a file system folder.