Windows 7 - Can't open folders

I was working on my computer last night without any problems. Ive just come to it and tried to open a folder I was working with, It says

"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"

I could understand this if it was a document, but a folder

Forgot to say, It only does it if I double click the folder. If I right click and go to open the folder opens

Try this:
Default File Type Associations Restore

Use the REG file for Folder Protocol

I encountered that problem after the MS update came out on Jan 12. Worked around it by doing a system restore. My computer auto-updated again last night and guess what? There's the problem again. I'd love a real fix here, just rebooted from another system restore. This time at least I had the sense to take a screen shot for documentation.

Although this may not be the 'real fix' you requested, for one thing, I'd cease allowing automatic updates because they sometimes conflict with something running on your system, causing problems. Instead you should consider setting your system to notify you when an update is ready, thereby giving you time to shut down EVERYTHING that's open: all running prgrams, apps, messengers, IMs, email clients, etc. After everything is shut down, then just download one update at a time, waiting at least a day or two between downloading them, to make sure that update has not caused any problems. That way you have several advantages: First, the update will be less likely to cause any corruption or conflict with something on your system, and second, if there should be a problem with that update, you'll know exactly which update it was that caused the problem, allowing you to take action. You can either uninstall it and try reinstalling it, do a System Restore, or take whatever other action is called for.

In regard to your current problem, you could try uninstalling the update and reinstalling it. Or, you could also try another System Restore to the most recent Restore Point prior to the last update's download.

The Reg mod worked. It happened after the update too.

Ive got 2 other computers on 7, Ive just checked the folders and Both have the same problem too.