Problem Summary:
Folder Options is not available in the Tools menu in Windows XP, either because it is hidden or disabled. The Folder Options may also not be accessible via the Control Panel. See how to access the Control Panel on your computer here.
How to Fix Folder Options not Available:
If Folder Options is disabled but Registry Editor is still working in your system, then you can enable Folder Options by editing Windows Registry.
1) Click on Start, then Run on your computer
2) Type regedit in the Run dialog box, and press Enter on the keyboard, or click OK.
3) This will open the Registry Editor, now go to following keys:
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer
4) In the right-side pane of each registry key above, check whether a DWORD value named NoFolderOptions exists or not?
5) If NoFolderOptions DWORD exists in any registry key, right click on it and select Delete.
6) Close the Registry Editor
7) Reboot your computer, and you should now be able to see the Folder Options under the Tools menu.
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