This is quite ol, so I don't know if oy will work in Windows 7
I think I've found it. Hope it helps others with the same problem. I right-clicked on the folder, chose diable Thumbanil View in properties, then went to View>FolderOptions, clicked the View tab and unchecked
Show file attributes in Detail View, refreshed and it worked.
I went back to the drive properties and noticed the folder had the Read-Only attribute checked whereas before it didn't.
So I removed it all, right-clicked on the folder, chose Enable Thumbnail View and thewn checked the Read-Only attribute, refreshed and it worked.
I tried this a few times, but for some reason when I check Enable Thumbnail View, a check will not automatically be added to the Read-Only attribute.
So as long as both boxes are checked it works correctly.