Some of the below points you should aware if web folder is not working properly in your SharePoint site.
When you try to access an Explorer View page on Windows Server 2003, you will sometimes receive the following error: “Explorer View requires Internet Explorer 5.0 or greater and Web Folders.”
This is typically caused by the fact that Windows Server 2003 does not include Web Folders (FPRPC) technology and, by default, the Web Client Service is disabled.
You can resolve this in one of two ways:
1. Install Microsoft Office 2003 or FrontPage on the server. Office 2003 and FrontPage install Web Folders components which will then allow you to access the Explorer View using FPRPC.
2. Enable the Web Client Service on the server. (We have tested in our production which did not work out)
If anybody out there has been building demo machines on Windows Server 2008 or Windows Server 2003 you will have run into this issue at some point. Explorer View does not work on document libraries, nor can you map a network drive to a SharePoint site.
Solution: The server platforms effectively don't like web folder views until you install the fix KB907306. That fixes works for both Windows 2003 and 2008.
Now you can happily map a SharePoint site to your network places and use the Windows Explorer to browse the SharePoint sites.
It does not seem to be the problem with an internet explorer. When you attempt to way in an Explorer View page on Windows 7 then you must receive the following error: “Explorer View requires Internet Explorer 5.0 or greater and Web Folders.” Actually this issue comes when your operating system does not include the Web Folders (FPRPC) technology and this service is disabled by default on client machine. To solve this problem, you just need to install the FrontPage on the server then you may try doing the same thing.