After reading and replying on this thread I'll post the problem I'm having here also:
Yesterday, Windows Update provided a list of 14 important updates to install on one of our Windows 2008 R2 Enterprise SP1 servers. After I installed the updates and the server restarted, Windows Explorer would not open Folders. I could open
Windows Explorer and I could select Libraries and Favorites from the Navigation Pane. But in the main browser content, once I tried to open a Folder, I received the following error: "This file does not have a program associated with it for performing
this action. Please install a program or, if one is already installed, create an association in the Default Programs control panel."
(side note: I could open the Folders through the + before the folder in the navigation pane or by right-clicking and selecting to "Open in New Window". Once I was in the new window, the problem was the same, folders would not open.)
I made a snapshot before installing the updates, so I could easily go back to the state before the updates and started to install them one by one. KB2691442 was the update that caused this behaviour. For now, we temporarily do not install this update but are not happy with this solution!