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MANUAL METHOD:

Click Start, choose Run and execute regedit.

Navigate to: [HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer]

Look for a value called NoFolderOptions on the right panel

Right click on the NoFolderOptions value and choose delete

Navigate to: [HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer]

Right click on NoFolderOptions on the right pane and choose Delete

ALTERNATE METHOD:

Download this batch file and the problem would get fixed.

Courtesy: myfix