I see this strange behavior as well.
Everything is accessible using the drop down menu but not from My Computer.
Very strange as no changes were done in the Open / Save dialogs.
This bug (probably in the .Net Framework) doesn't exist in the compiled executable so it should not bother you.
I have this behavoir in the compiled executable of my application. Runs fine when I compile for desktop, but not for PPC. My open dialog filter is set for all files. Any suggestions?
I added the line: OpenDialog1.Filter = "All Files|*.*"
at runtime. Now files show up, but no folders. Because of this, I cannot navigate to lower level folders to select the file I need.