I can't exactly follow what you say because when i open my Internet Explorer from my desktop, i go to tools and these are my options: delete browsing history, pop-up blocker, phishing filter, manage add-ons, work offline, windows update, fullscreen, menubar, toolbars, windows messenger, diagnose connection problems, sun java console, internet options.
I don't see a "Folder Options", there is a 'View' inbetween Edit and Favorites but that doesn't show anything about folder options either. I have Internet Explorer 7.0