If this is happening after you upgraded to SP2, the Kelly tweak won't work,
in my experience and as reported by others.
Try the following work around, suggested to me by Bobby Mikkleson:
Try booting into Safe Mode with Network support and then access the
folders. This will most likely allow you to change the folder properties.
Unfortunately, when you reboot in normal mode, you still won't be able to
change the folder properties, but they will retain the settings you made in
Safe Mode.
Alan