Follow these steps if you are unable to use Windows Explorer Mode in for WSS 3.0. Please note that this is workaround.
NOTE: These steps have tried and tested on a Windows Vista machines in.
Disclaimer: These steps involve turning on some services and making changes to the Windows Registry. Please make changes at your own discretion. Apps4Rent is not liable for any dataloss or any damage that might occur if the steps fail.
I. Please make sure the Web client service is running on your Machine.
1. Go to Start and in the search box type services, now click on Services
2. Search for Web client and start it, if it is stopped. All you have to do is right click and click on Start or Restart
II. You have enabled Basic Authentication in the registry
Steps are as follows:
1. Click Start, and then click Run (If you cannot find run, then in the search box type run).
2. In the Open box, type regedit, and then click OK.
3. Locate and then click the following registry key: HKEY_LOCAL_MACHINESYSTEMCurrentControlSetServicesWebClientParameters
4. On the Edit menu, point to New, and then click DWORD Value.
5. Type BasicAuthLevel, and then press ENTER
Note: You may have the parameter, if present, you just have to check the value it holds.
6. Right click on the BasicAuthLevel parameter and click on Modify.
7. In the Value data box, type 2, and then click OK.
8. Exit Registry Editor, and then restart the computer.
Additional Reference Article: http://support.microsoft.com/kb/841215
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