WinXP – remove folder option restriction

Explorer shows the Folder Options icon, but the icon does not respond to left or right mouse clicks. And the Tools drop-down menu does not include Folder Options. Also, Control Panel does not show the Folder Options icon.
How do I restore this feature? I am logged on as admin, am not on a network and do not use Group Policies. I have tried booting in Safe Mode but to no avail.