I've done so more testing of this strange behavior.
When I
Right Click / Drag Folder-A To Folder-B / Create Shortcut-A /
Depending on the Folder-B I'm dragging Folder-A TO I may not get the
expected Shortcut-A with the arrow in the icon.
Instead I get what appears at first to be Copy-A ( a copy of Folder-A)
inside Folder-B).
E.G. doing the above into a folder in the
C:\Documents and Settings\All Users\Start Menu\Programs
hierarchy on my HP ZD7000 Windows Media Center Edition 2004 will
create what appears at first to be Copy-A instead of Shortcut-A.
If Details View is on and Sort is set to is File Name, the apparent
Copy-A will sort amongst other SUBFOLDERS of Folder-B and not down
below among other FILES in Folder-B.
While it looks like a Copy if I double click on Copy-A to open it, and
the ADDRESS Tool Bar is turned on I see that it is NOT really a copy,
because the ADDRESS or path to the Copy-A is identical to the path to
Folder-A
In order to get a Shortcut-A that Sorts down among the FILES and not
the SUBFOLDERS in Folder-B I can't create Shortcut-A by dragging to
Folder-B if Folder-B is in the C:\Documents and Settings\All
Users\Start Menu\Programs hierarchy.
I must first create Shortcut-A some place else & THEN drag it to
Folder-B
E.G. I can Right Click / Drag Folder-A within ParentFolder-A / Create
Shortcut-A (create the shortcut in the same folder as the target) or I
can do the drag outside of C:\Documents and Settings\All Users\Start
Menu\Programs.
Dragging to the Desktop will work.
This might almost be a feature if it worked system wide because it
would give you some flexibility about where the Shortcut-A sorts in
Folder-B, i.e. amongst SubFolders-B or amongst Files in Folder-B.
Another interesting behavior is opening Folder-A by double clicking
EITHER Shortcut-A OR apparent Copy-A the BACK ICON will take you back
to Folder-B in EITHER case.
However the Up Arrow works DIFFERENTLY.
If you opened Folder-A from Shortcut-A then the UP ICON takes you UP
to Parent-A.
But if you opened Folder-A from apparent Copy-A the UP ICON takes you
BACK to Folder-B as it really was a copy of the Folder-A, a real
Folder and UP takes you UP to the parent.
Copy-A definitely doesn't appear to be a REAL copy (taking up
duplicate disk space - I hope not), because besides the ADDRESS TOOL
BAR PATH matching the original Folder-A, a change made to Folder-A,
e.g. creating the file test.txt immediately shows up in Copy-A.