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You mean the "show filmstrip" option? (icons at the bottom, large preview above it)
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Eric... Not sure it called the "show filmstrip" option in Win 2K, but it is basically the same. The My Pictures folders shows a small thumbnail image of all files. There is also a preview window in the bottom left corner that shows a larger preview of the currently selected icon/thumbnail. Mine doesn't show PSD previews, even though the thumbnail image shows up.
JoeD... I'm actually using PS 7, but you may have answered the question with the reply on the other forum.
1) Photoshop CS => Edit => Preferences => File Handling => Maximize PSD File Compatibility => Always
(this will generate the composite image for layered Photoshop files)
If PS 7 has this option, it is possible I do not have it enabled and therefore no composite image is being generated to be used by the "My Pictures" folder preview.
Will check this tonight to see if this helps.
Thanks for the replies, they're much appreciated.
Sark