Trivial script from forum doesn't work

        tell application "Finder"
	open folder "Bobs_G4-1:^Back:"
	make new folder at "Bobs_G4-1:^Back:" with properties {name:"St. Paul General"}
	set dumm to "Bobs_G4-1:^Back:St. Paul General:"
	set label index of dumm to 2
	end tell

This script returns an error

Can’t set «class labi» of “Bobs_G4-1:^Back:St. Paul General:” to 2.

I have seen this script on this forum. I’m running 10.4.1

Try this:

tell application "Finder"
	set parentFolder to desktop -- Change this to "Bobs_G4-1:^Back:"
	make new folder at parentFolder with properties {name:"Test"}
	set label index of (result as alias) to 2
	open parentFolder
end tell

Model: Mac mini
AppleScript: 1.10
Browser: Safari 412
Operating System: Mac OS X (10.4)