Again, go to Start, Settings, Folder Options. This time, click on the General tab, then go to the bottom and select Custom, based on settings you choose:, then click the Settings button next to that.

From there, you'll be able to enable or disable Active Desktop, choose your browse method for folders, view Web Content in folders (or not), and even whether you want a single or double-click to launch selected icons (and how they'll appear).