regsvr32 "%SystemRoot%\System32\actxprxy.dll"
regsvr32 "%ProgramFiles%\Internet Explorer\ieproxy.dll"
If folders are opening in new windows on your Windows 7 machine even though settings from Folder Options is set to use same window then follow following steps:
- Open command prompt in administrator mode
- Run above listed 2 commands
- Reboot the machine
You problem will be solved!