I no longer run XP, but in my experience with Windows 7 the folders switch view in the place dialog depending on what they are set to be in the display options in Explorer, except that folders containing only images seem to default to icons.
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I no longer run XP, but in my experience with Windows 7 the folders switch view in the place dialog depending on what they are set to be in the display options in Explorer, except that folders containing only images seem to default to icons.