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There are a number of ways in which the Folder Options Menu item can be restored. To begin, you should check your System Registry – this can be done following these steps:
• Go to Start > Run and at the insertion point enter REGEDIT.
• Expand the HKEY_CURRENT_USER section, and then expand (by clicking the "+" symbol) the following sections:
Software > Microsoft > Windows > CurrentVersion > Policies > Explorer
• In the right pane you’ll see the list of values that are configured by Windows. You may see a DWORD value named NoFolderOptions. If none is present however, you’ll need to create one. To do this, right-click in the empty space on the right panel and choose New > DWORD Value.
• Name this new DWORD NoFolderOptions.
• Right-click the new entry, select Modify and set the value to 0.
• You should now be able to go to Windows Explorer and find the Folder Options entry in the Tools menu. If not, try restarting your PC.
If this option doesn’t work and you have completed a virus scan which has detected no issues or repaired those that it did find, you might want to check your Group Policy.

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To restore the Folder Options menu item via Group Policy:
• Go to Start > Run and at the insertion point enter gpedit.msc.
• In the Group Policy window, expand User Configuration and find Administrative Templates > Windows Components > Windows Explorer.
• In the right pane, look for the entry Remove the folder option menu items from the tools menu. Double click to show the Properties screen, and set it to Not Configured.
• Click OK to confirm and close the Group Policy screen. Restart your PC.
Following these steps, you should have successfully restored the Folder Options menu item.
Note that a failure to restore the menu item using any of the methods described here may point to a more severe underlying issue with your Windows XP installation.