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JSI Tip 0913. Service Pack 4 desktop folders do not retain their settings.

Microsoft acknowledges the subject problem, but does not currently have a solution.

I have had some success by applying the following rules:

InterNet Explorer Desktop Update not installed:

      Install the Active Desktop but DO NOT enable it.

InterNet Explorer Desktop Update has been installed (even if not enabled):

      Uninstall Active Desktop using Control Panel / Add/Remove Programs/ Microsoft Internet Explorer.

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