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When listing a directory Windows XP will search for and parse Desktop.ini files. This will noticably affect performance when a large number of subfolders are involved - it does this for the current folder and one level down the directory tree.
Desktop.ini can be used to provide a custom icon, thumbnail view, pop up description and background pattern.
In additions to this 'eye candy' desktop.ini can make normal file folders into 'Special Folders' (eg Fonts, History, Temporary Internet Files, "My Music", "My Pictures", and "My Documents").
Desktop.ini files are only visible in Windows Explorer if you first un-check "Hide protected operating system files" (under Tools, Options, View)
To see the file locks created by this process run the following command on the file server, while an XP client is (slowly) listing a large directory:
NET FILE | Find "desktop.ini"
or
OPENFILES /s MyServer |Find "desktop.ini"
This issue is discussed in Q840309 (included in XP sp2)
A quick solution to this performance problem is to delete the non-essential .ini files:
attrib desktop.ini -h -s
del desktop.ini
Before doing this in bulk you should compare your existing folders with some empty folders that don't have any desktop.ini files to see if this improves browsing response time:
Create a separate (testing) file share,
then create 1000 sub folders - from the command line:
FOR /L %G in (1,1,1000) do md test%G
To delete all desktop.ini files one level below the current directory run the following from the command line:
FOR /f %G in ('dir /b') do attrib %G\desktop.ini -h -s
FOR /f %G in ('dir /b') do del %G\desktop.ini