Most of what you ask is in prior discussions.
http://www.unawave.de/windows-7-tipps/disable-sorting-auto-arrange.html?lang=EN shows you what you are in for and I found it with google along with why Microsoft removed it.
I am learning Windows 7 on my new computer, having changed from WinXP Pro on my old one.
I like to have shortcuts to folders placed on my desktop, with shortcuts to related programs placed inside the folder. I am having some problems with respect to managing the view options.
1. I cannot seem to get rid of the navigation pane without it also disappearing in all other folders, e.g. when I look at directories using explorer on "my computer". For these folders pointing to a small group of related programs, that navigation pane is unwanted extra baggage.
2. I would like the icons in these desktop folders to be displayed as small or medium icons. BUT, when I change the view option for them, it seems to apply to other folders in my viewing with explorer.
3. I don't seem to be able set the size and location of these desktop folders. I was able to do that in WinXP.