This is a very common problem, specially for computers using WinXP, where the viruses tend to look for this option immediately after infecting your PC. Many people don’t know what to do once this happened, so I’m going to tell you what to do to enable it again.

These are two things that you need to do.

1. Open regedit and go to: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer, and HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\ Explorer, and delete NoFolderOptions (if any or similar).

2. When we’re sure that that the registry is clean, we proceed to open the Group Policy Editor, which can be open by typing gpedit.msc on the run prompt.

Then, go to: User Configuration > Administrative Templates > Windows Components > Windows Explorer, and double click on Removes the Folder Options menu item from the Tools menu. Set it to Disable or Not Configured.

With those two steps you should fix the problem

Source | Addictive Tips