My friends Windows 7 x64 system is not displaying the sub-folders of libraries tab in windows explorer pane. See below:

Whenever he or I click on the arrow next to the tab it opens nothing and clicking on the folder show what you see above. However if I click on the documents tab from the start menu, it brings up the documents folder. The Libraries tab on the left pane doesn't work though from that either. Any ideas?

%appdata%\microsoft\windows\librarieshave a look and see what is in there. – DMA57361♦ Sep 10 '10 at 9:25