Thanks for the reply Shawn.
I should have clarified that I'm opening folders that reside directly on my Desktop or from shortcuts that are on my Desktop. Either way each folder's size and position was being retained prior to disabling the Auto Arrange feature. Now whenever I move or resize an open folder all susequent folders are opened in the same location and size as that original folder. For some reason Explorer is only able to retain the size and location of a single folder now and then uses that information to open all other folders.
When I restored my registry settings to a state prior to disabling Auto Arrange, Explorer once again retains each folder's individual size and position as expected. If I reapply the disabling Auto Arrange registry settings Explorer again fails to remember each folders size and location. There is definitely a change in the way Explorer opens folders after disabling the Auto Arrange feature.
Prior to trying your solution I tried a different Auto Arrange fix that I found at: How to Disable Auto Arrange in Folders in Windows 7? - The Winhelponline Blog
but I encountered the exact same side effects that your solution is also causing.
There must be some additional registry tweak that is needed to allow Explorer to retain the ability to remember each folders location.