Windows 7: Network Location Shortcuts open a 'Target' folder

Yesterday, something happened on my PC. Now when I double-click on a network location shortcut, instead of opening the folder, a new folder shows up. I get a file called desktop.ini and another shortcut folder called target. When I double-click the target shortcut, then I get the actual folder contents.
I've tried deleting and re-creating my shortcuts. They work normally for a while, but eventually they get messed up again.
Also, I don't know if this is related, but somtimes when I try to delete a folder, my system hangs on the 'Preparing to recycle...' dialog box.

This desktop .ini file shows up with you enable hidden files and folders in Folder Options.

To disable viewing hidden files go to Start > Control panel > Large Icons> Folder Options. Select the "View" tab and select "Don't show hidden folders, files or drives" then hit the "Apply" button.

I'm not sure about the deleting file problem.

Thanks, I'm aware of the folder options to show or hide hidden and system files. The real issue is that when I click on a shortcut, the results are not displayed. It displays the desktop.ini file and another shortcut folder labeled 'target'. I then need to open this 'target' folder to get to my files.

It seems to have resolved itself. I reconfigured my shortcusts a few times, and now they seem to be behaving properly.