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You need to turn of Simple File Sharing.
To do this, click on Start and go to My Computer. Click on Tools and click on Folder Options. On the View tab, uncheck "Use simple file sharing (recommended)"
If that does not work:
In normal mode, click on Start > Run and type in regsvr32 /i shell32.dll.
It will take a few seconds but after that all should be OK.
Guys, thanks for your help when I received Access Denied. Please note that I could open folders now, however, some folders still don't open. I apologize to everyone who helped me with my 'problem'.