found this post while googling:
man this problem was getting on me like anything, but finally.....I got a way out of this.I was just exploring the windows registry trying out some stuff, when i saw this "NoFolderOptions" field set to '1'.
When i deleted it the problem was rectified.You will find this field in the infected computer at the following registry address: [HKEY_CURRENT_USER\Software\Microsoft\Windows\Curre ntVersion\Policies\Explorer]
set the DWORD "NoFolderOptions" to 0 or just delete it....and there you go the problem is GONE!!!!.
it says he deleted the NoFolderOptions but most likely setting the field to 0 will have the same effect and probably more wise