IE7 does not open FTP sites in Windows Explorer

Problem: When accessing a FTP page through IE7, IE7 will display the results in the IE7 browser window in HTML rather than opening Windows Explorer.

Solution:

Create a registry file to modify a string in the registry. Create the “IE7 FTP Fix.reg” file.

Copy and paste the following text in to notepad and save it as “IE7 FTP Fix.reg”, changing the file type to All Types so that it is saved as a registry file. Then double click on it to install.

Windows Registry Editor Version 5.00
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Internet Explorer\Main\FeatureControl\FEATURE_INTERNET_SHELL_FOLDERS
"iexplore.exe"=dword:00000001

Source: http://ie7triage.spaces.live.com/Blog/cns!3B6634EF5458F389!192.entry