Further to a number of recent occurrences of this issue, please note the following details from the Microsoft Knowledge Base...
http://support.microsoft.com/kb/816375/
Important This article contains information about modifying the registry. Before you modify the registry, make sure to back it up and make sure that you understand how to restore the registry if a problem occurs. For information about how to back up, restore, and edit the registry, click the following article number to view the article in the Microsoft Knowledge Base:
256986 (http://support.microsoft.com/kb/256986/) Description of the Microsoft Windows Registry
SYMPTOMS
When you view local drives or mapped network drives in Windows Explorer on a Windows XP-based installation, the left pane (folder tree) or tree view may flicker or constantly refresh the whole directory structure with speeds varying from every few seconds to every few minutes.
Microsoft Windows-based servers continue to communicate file system changes to Windows XP-based clients. This may cause extra traffic over a wide area network (WAN).
These symptoms do typically not occur on Windows 2000 clients.
CAUSE
If you have mapped a drive to a share on a Windows-based server, and changes occur in the file system in the folder tree of the mapped share, the server reports the change to the Windows XP client.
Windows Explorer refreshes or redraws the open window when it receives a file change notification.
Note Excessive flickering can also be caused by antivirus software or some other rogue third-party software constantly updating the folder or directory tree on the server that clients are connected to.
RESOLUTION
Warning If you use Registry Editor incorrectly, you may cause serious problems that may require you to reinstall your operating system. Microsoft cannot guarantee that you can solve problems that result from using Registry Editor incorrectly. Use Registry Editor at your own risk.
To resolve this problem, apply the Critical Update 810565, and add a new registry key. To do this, download 810565 from the following Windows Update Web site:
http://windowsupdate.microsoft.com (http://windowsupdate.microsoft.com)
After you apply hotfix 330929 or Critical Update 810565, you can add one of the following new keys to the Windows registry to turn off Change Notify requests for file and folder changes that occur in subfolders of a mapped network share:
HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\Explorer
-or-
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\Explorer
Configure the new key as follows:
Name: NoRemoteRecursiveEvents
Type: REG_DWORD
Value: (boolean) 0 or 1
Default Value: 0
Description:
A setting of 1 turns off Change Notify requests for file and folder changes that occur in subfolders of a mapped network share. When you set this registry key, the server still sends a Change Notify event when a file or folder is changed in the root and first directory level of the mapped network share. However, the server does not send a Change Notify event when a change is made at the level of the second subfolder or deeper in the mapped network share, and therefore you notice less flickering in the tree view of Windows Explorer.
Note When you change the value of this key, this has no impact on the active view of each folder in Windows Explorer. Updates are visible immediately.
When you set the NoRemoteRecursiveEvents key, you may experience the following issue: If systems have redirected USERPROFILE or other network based configurations, the user interface (UI) may not update automatically if this setting is enabled.
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