New
#580
Ok, I see what you mean now.
I'm not aware of a way for it to work from the shell folder location.
As a workaround, you could add your "C:\Users\<user name>" folder location as a link under Favorites in the navigation pane to open it from there instead to be able to arrange items.
Favorites - Links - Add or Remove in Navigation Pane - Windows 7 Help Forums