Folder option is gone

[jholland1964]

Have you recently installed or updated nVidia drivers?
Have you done any recent updates or added anything, software or hardware lately?

Have you tried updating Macromedia Flash?

Just because one anti-virus program says there are no viruses does not mean there are no viruses on the computer, especially when you are suddenly experiencing unusual problems.
I always recommend TO BE SAFE that you visit this link
and follow the steps given there.
Answer my questions First and then follow the steps given on PhilliePhan's link and let me know what you find after completing those steps.
Judy

[TurcoLoco]

It is very likely that either a malicious software or a faulty application installation/uninstallation had caused this problem as Jholland suspected.

But if you are confident that your system is clean, you could try running the attached fix. Even if it doesn't resolve the missing Folder Options menu, it should enable seeing/accessing hidden files and folders.

If the problem still remains, you should go through the steps in that sticky before doing anything else...

~TL

PS. I also strongly suggest that you backup your entire registry before doing anything at all (Erunt is very good, see the list in my signature link).