Go to Start/Run and type in:
regsvr32 /i shell32
If that doesn't correct the issue gp tp the link below and scroll down to line 18-right column) and click on "Search Opens When Double Clicking A Folder" to download a reg file fix. Save the REG File to your hard disk. Double click it and answer yes to the import prompt.
For the icon problem just start your computer in SAFE mode then restart it in Normal mode. This will rebuild the iconcache.db file.
All my file folder (documents and settings for ex.) icons have reset to that ugly non-applicable for any of the above blank icon, and now when i do click on a file folder its first action is to open a blank search' window, as oppose to normal default action of 'open'folder, when i right click on it, search is the default action, what is going on?? ive looked at folder options in control panel and haven't been able to find solution.