I think you are using a UNICODE build in your project. "foo" is a const char *, but Create Directory expects a LPCWSTR which is const wchar_t*.
The fix this call CreateDirectoryA ("foo", NULL)
The other about missing _WinMain@16 is that you have created a Windows application but probably use a normal main function.
To fix this set SubSystem to Console under Properties->Linker->System