The changes to the size, view, icon or position of a folder are lost on a computer that is running Windows XP, Windows Vista, or Windows 7.

For example, you may experience one or more of the following issues:

Microsoft Windows does not remember the View settings for a folder when you reopen the folder.

Note The View settings include Thumbnails, Tiles, Icons, List, Details, and so on.

Windows does not remember the size or the position of a folder window when you reopen the folder.

An incorrect thumbnail image is displayed for a folder.

The thumbnail image does not appear for a folder.

Note This issue may occur in Windows XP or in Windows Vista even if you select the Remember each folder's view settings check box under the Advanced settings menu on the View tab of Folder Options in Control Panel.

This issue occurs because the registry settings for folder options are incorrect.

To fix this problem, reset the registry settings for folders. To do this, follow the appropriate steps for your operating system:

Windows 7 or Vista

Delete the following registry subkeys:

HKEY_CURRENT_USER\Software\Microsoft\Windows\Shell\Bags

HKEY_CURRENT_USER\Software\Microsoft\Windows\Shell\BagMRU

HKEY_CURRENT_USER\Software\Microsoft\Windows\ShellNoRoam\Bags

HKEY_CURRENT_USER\Software\Microsoft\Windows\ShellNoRoam\BagMRU

HKEY_CURRENT_USER\Software\Classes\Local Settings\Software\Microsoft\Windows\Shell\BagMRU

HKEY_CURRENT_USER\Software\Classes\Local Settings\Software\Microsoft\Windows\Shell\Bags

For x64-based versions of Windows Vista or Windows 7, delete the following registry subkeys:

HKEY_CURRENT_USER\Software\Classes\Wow6432Node\Local Settings\Software\Microsoft\Windows\Shell\Bags

HKEY_CURRENT_USER\Software\Classes\Wow6432Node\Local Settings\Software\Microsoft\Windows\Shell\BagMRU

Re-create the following registry subkeys:

HKEY_CURRENT_USER\Software\Classes\Local Settings\Software\Microsoft\Windows\Shell\BagMRU

HKEY_CURRENT_USER\Software\Classes\Local Settings\Software\Microsoft\Windows\Shell\Bags

For x64-based versions of Windows Vista or Windows 7, re-create the following registry subkeys:

HKEY_CURRENT_USER\Software\Classes\Wow6432Node\Local Settings\Software\Microsoft\Windows\Shell\Bags

HKEY_CURRENT_USER\Software\Classes\Wow6432Node\Local Settings\Software\Microsoft\Windows\Shell\BagMRU

Create and then set the BagMRU Size registry value to 5000 in the registry subkeys that you created in Step 2.

Source:- Microsoft

Is this actually needed after a fresh install though?

Is this actually needed after a fresh install though?

No