When you use Internet Explorer to perform the subject action, you receive one or both of the following:
Internet Explorer could not open http://<ServerName> as a web folder.
Would you like to see its default view instead?
The folder you entered does not appear to be valid. Please choose another.
This issue occurs because Windows Server 2003 does not include a Web Extender Client component, which is required to connect to a server that has a Web folder.
To workaround this behavior:
1. Copy the %SystemRoot%\System32\Webfldrs.msi Windows Installer package from Windows 2000 or Windows XP to %SystemRoot%\System32\Webfldrs.msi on Windows Server 2003.
2. On Windows Server 2003, use Start / Run / webfldrs.msi / OK.
3. Press Next.
4. Press Next.
5. Press Next.
6. Press Next.
7. Press Install Now.
8. Press OK.
NOTE: If you have a SharePoint Portal Server license, you can download http://www.microsoft.com/downloads/details.aspx?FamilyID=df39e250-f7ae-445a-ac9d-a80c9035ed6b&displaylang=en instead.