If drop down box is empty hide.

  '*****************************************************************
     '* Step 2: Get the Store the User would like to view
     '*****************************************************************

ElseIf Request.Form("FormAction") = "Step2" Then



     %>

     <form action="ar_home_documents.asp" method="post" name="frmDisplay">
     <input type="hidden" name="FormAction" value="Step3">
     <input type="hidden" name="txtDivisionName2" value="<%=Request.Form("txtdivision2")%>">
     <input type="hidden" name="txtFirstFolderName" value="<%=Request.Form("Folders")%>">
     <% response.write "<font color='Black'><STRONG><EM>Select Subject: </font></EM></font></STRONG><BR>"

          Dim strFolder
         
         '******************
          Dim selectbox
          selectbox = ""
          '******************
         
         Set strFolder = Request.Form("Folders")
          set txtFirstFolderName = strFolder
          'Response.Write "txtDivisionName = " & strfolder & ""
         
                                   objPath = Server.MapPath("AR_documentation/" & strFolder)
                                   Set objFSO = CreateObject("Scripting.filesystemObject")
                                   Set objfolder1 = objFSO.Getfolder(objPath)
                                   Set objFolder2 = objfolder1.Subfolders
                                   selectbox="<select name=folders2>"
                                        For Each f1 in objFolder2
                                        selectbox=selectbox & "<option>" & f1.name
                                        Next
                                   selectbox=selectbox &"</select>"
                                   set objfolder1=Nothing
                                   set objFSO = Nothing
                                   set objFolder2 = nothing
                                   

               dim objPath2, fso, folder
               'Set fso = Server.CreateObject("Scripting.FileSystemObject")
               objPath2 = Server.MapPath("AR_documentation\" & strFolder)
               Set FSO = CreateObject("Scripting.filesystemObject")
               Set folder = FSO.Getfolder(objPath2)
               'This works for the C Drive.
               'Set folder = fso.GetFolder("C:\Inetpub\wwwroot\aresearch\AR_documentation\" & strFolder & "")
            
            '******************
            if  selectbox <> "" then
                  response.write selectbox
                 %>
                 <INPUT name=btnSubmit type=submit value="  Next >">
                 <%
             end if
            '******************    
     
     
     Response.Write "<BR>"
     Response.Write "<BR>"
     Response.Write "<BR>"

     response.write "<STRONG><EM><font color='Black'>Select File: </EM></STRONG></font><br>"
     %>
     <SELECT id=select1 name=select1 onChange="javascript:window.open(this.value,'groovywindow','toolbar=no,location=no,directories=no,status=no,menubar=no,scrollbars=yes,resizable=yes,height=' + WinHeight + 'width=' + WinWidth + 'copyhistory=no')">

Use a simple counter and if the counter value is set then write the selest otherwise leave it llike this

dim counter
counter=0
                                        For Each f1 in objFolder2
                                        counter=counter+1
                                        selectbox=selectbox & "<option>" & f1.name
                                        Next


if counter>0 then
response.write selectbox
end if


and then with submit button use respose.write  after this

               Set FSO = CreateObject("Scripting.filesystemObject")
               Set folder = FSO.Getfolder(objPath2)
               'This works for the C Drive.
               'Set folder = fso.GetFolder("C:\Inetpub\wwwroot\aresearch\AR_documentation\" & strFolder & "")

like this

if counter>0 then
response.write "<INPUT name=btnSubmit type=submit value='  Next >'>"
end if

FOllowing on from the earlier comment, you can hide the submit also like this:
If HasVals then
  %>
     <INPUT name=btnSubmit type=submit value="  Next >">
     <%
End if
     

Some times the answer is so simple you just have a hard time figuring it out in your own code mess.  Thanks for the help.