'New Document' requires a Microsoft SharePoint Foundation-compatible application and web browser. To add a document to this document library, click the 'Upload Document' button.

In Microsoft OneNote 2010, you can share a notebook so that you can access it on other computers or on the Web, or so that you can work in it together with other people. Taking notes as a group is a collaborative process. As a collaborative tool, OneNote offers far more than the ability to send static notebook pages via e-mail.

When you share a notebook on a SharePoint site, you can use the features of a library to manage and share your notebooks. You can manage who has permission to view the notebook or contribute notes. You can store additional information about the notebook or its pages, such as the department name or project number. You can also track versions of the notebook, so that people can view or restore an earlier version if needed and receive updates when the content changes by using alerts or RSS Feeds.

Problem Description:

Consider the following scenario:

• You have a server that is running Microsoft SharePoint Foundation 2010. 

• You create a document library that uses the Microsoft OneNote 2010 template. 

• In the new document library, you click New Document. 

In this scenario, you receive the following error message:

'New Document' requires a Microsoft SharePoint Foundation-compatible application and web browser. To add a document to this document library, click the 'Upload Document' button.

Resolution:

To work around this issue, follow these steps:

1.  Start OneNote 2010. 

2.  On the File tab, click New. 

3.  Under Store Notebook On, click Network. 

4.  Type a name for the notebook in the Name field. 

5.  Under Network Location, select the SharePoint location where you want to add the OneNote notebook. 

6.  Click Create Notebook.

If you have any queries/questions regarding the above mentioned information then please let me know. I would be more than happy to help you as well as resolves your issues. Thank you.