Win98SE, 1RC3: Steps: 1. Create a subfolder to any folder (with no other subfolders already). 2. Move or delete the subfolder Actual: The "Expand arrow" stays as though the tree can be expanded, even though there are no more subfolders. Clicking on it will change it's orientation but does nothing else. Proper: The arrow should disappear and the folder should be back to normal.
verified as a duplicate