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Unable to move or rename files or folders in Vista
 
If you try to move or rename files or folders on your Windows Vista, you cannot move or rename files or folders, you get the error : The File or Folder does not exist.
 
Thanx MSFN.org
 
It is quite likely that the issue is being caused due to deletion of the Registry branch:
HKLM\Software\Microsoft\Windows\CurrentVersion\explorer\FolderDescriptions

If you have installed update KB938979 by (an earlier version of) vLite edited Vista or installed the beta version of KB938979, you are most likely to be facing this problem.

 
Uninstalling the update is not known to help, as its a case of registry corruption. What you need to do is restore the missing registry hive to its default settings.
You can apply the applicable registry patch mentioned below. Download it and rt click and merge it into your registry. This registry fix is a result of the discussions here at MSFN.org and you may download the fix from here or from the mentioned source directly.
FD32.zip
FD64.zip
Please ensure that you have indeed installed the KB938979 update ! And yes, best to always create a system restore point first !
The problem being caused, has since then, been fixed in the newer version on vLite and the final version of KB938979.
 
 
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