Problem:

The Folder Options command is missing from the Tools menu (see image below; click to enlarge).

Cause: Probably caused by malware.

Resolution:

For Windows XP Professional:

1. Go to Start>Run >(type) gpedit.msc;
2. Expand to User Configuration>Administrative Templates>Windows Components>Windows Explorer;
3. Double-click “Remove the Folder Options menu item from the Tools menu” in the right-hand side pane;
4. If it is set to “Enable” or “Not configured” then set it “Disable”;

For both Windows XP Professional and Home Edition:

1. Click Start> Run>(type)regedit;
2. Navigate to HKEY_CURRENT_USER>Software>Microsoft>Windows>Current Version>Policies>Explorer;
3. In the right-side pane check for the DWORD value NoFolderOptions;

4.1 (see image below; click to enlarge)If it’s there, most probably it bears a value of “1″. Right-click on it, select “Modify” and change it to “0″ (zero);
4.2 (see image below; click to enlarge)If it is not there then create a new DWORD value by right-clicking and selecting New>DWORD;
Type in ‘NoFolderOptions” (without quotes) and press Enter;
Double-click the entry and set the value to “0″ (zero);

Open any folder and see if Folder Options is in the Tools menu. If it’s not
then log off and log in again or restart the system;