Article ID: 176583
When you right-click a folder, point to Send To, and then click Desktop As Shortcut, the new desktop shortcut may not use the folder icon. When you double-click the new shortcut, the Open With dialog box appears, prompting you to select a program association for the shortcut.
This problem can occur if the folder for which you want to create a shortcut contains spaces in its name.
For example, if you right-click the Program Files folder, point to Send To, and then click Desktop As Shortcut, the shortcut appears as a blank sheet with the Windows flag. When you double-click it, the Open With dialog box prompts you to select an association. You cannot open the Program Files folder from the shortcut.
Note that this problem occurs only when the Windows Desktop Update is installed with Internet Explorer 4.0.
To work around this problem, right-click the folder, and then click Copy. Then, right-click the desktop and click Paste Shortcut.
Microsoft has confirmed this to be a problem in Internet Explorer 4.0. We are researching this problem and will post new information here in the Microsoft Knowledge Base as it becomes available.
Article ID: 176583 - Last Review: June 22, 2014 - Revision: 6.0