Yeah, I agree. As far as I can work out, it seems much more likely to be something MS-related, about Web Folders. I'm not sure how or why you might have it installed, as it doesn't seem to be a default component.
Solved, WebFldrs XP had been partially uninstalled on my machine, which caused the anomoly of some programs finding it and others not. It is MS Tools for saving documents directly from Office & Windows to Front Page Extended, and other web servers. I have a program called Tuneup utilities which tracked down the problem and reinstalled the missing files.