The "Use Folders instead of Library" policy setting has no affect in Windows Vista

When you try to use the Use Folders instead of Library policy setting on a Windows Vista-based computer, the setting has no affect.

The Use Folders instead of Library policy setting is in the following location in the Group Policy Management Console (GPMC):

This problem occurs because the Use Folders instead of Library policy setting is not valid in Windows Vista. The setting should not be listed in the GPMC on a Windows Vista-based computer.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.