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When type in the path in address bar (1), or navigate through main panel (3) to the sub-folder, tree view panel (2) won't expand to same sub-folder.

This feature was in Windows XP. Is there any way to enable this feature in Windows 7 Explorer as well?

enter image description here

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If you find out how please post it, this drives me nuts. I started using Explorer++ or Q-Dir as a replacement because of this. Also when you use the arrow keys in pane 2 to go up or down the directory list, it does not display what is in the highlighted folder unless you press enter, stupid imho. – Moab Apr 17 '11 at 23:04
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Go to the Tools menu and then Folder Options.

(I know you do, but in case others don't have the menu, just press Alt)

Then simply click on Automatically expand to current folder.

enter image description here

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