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When you open Folder Options, the option Single-click to open an item (point to select) is dimmed. In addition, the option Show Common tasks in folders may also be grayed out. And you may be unable to click the Toolbars command when you right-click the taskbar.
This happens if Classic Shell is enforced though a policy. If the system is in a domain, please contact the network administrator to solve the problem. For Windows XP systems not connected to a domain and experiencing this issue, follow the steps provided in the Resolution section.
WARNING: If you use Registry Editor incorrectly, you may cause serious problems that may require you to reinstall your operating system. Microsoft cannot guarantee that you can solve problems that result from using Registry Editor incorrectly. Use Registry Editor at your own risk. Before you modify the registry, backup the registry key by exporting the corresponding branch. For information about how to back up, restore, and edit the registry, see the following article number to view the article in the Microsoft Knowledge Base:
Click Start, Run and type Regedit to launch the Windows Registry Editor
In the right-pane, set ClassicShell to 0. Restart Windows for the changes to take effect.
The "Single click" folder option should now be restored. If the problem persist and if you are using Windows XP Professional Edition, load the Group Policy Editor (GPEDIT.MSC) and go to:
User Configuration | Windows components | Windows Explorer Double-click the entry "Turn on classic shell" and set it to Not Configured Close Group Policy Editor and restart Windows.
ClassicShell setting allows you to remove the Active Desktop and Web view features. If you enable this setting, it will disable the Active Desktop and Web view. Also, users cannot configure their system to open items by single-clicking (such as in Mouse in Control Panel). As a result, the user interface looks and operates like the interface for Windows NT 4.0, and users cannot restore the new features.