Removing the folder options from tools is a piece of cake....

Open RUN from start menu or jst press window logo key + R

Then type "gpedit.msc"

A screen will pop up....

Now look on the left side and click on the "USER CONFIGURATION"....

After that click on the "ADMINISTRATIVE TEMPLATS"(which is the last one)....

Now look on the main window on right side and DOUBLE CLICK on "WINDOWS COMPONENTS"(which is also the last one)....

Now DOUBLE CLICK on the "WINDOWS EXPLORER"(which is the 3rd 0ne)....

NOw DOUBLE CLICK on "Removes the folder options menu item from tools menu"(which is also the 3rd one)....

A new window will popup.....

Now option will be on "NOT CONFIGURED"

Change it to "enabled"

Apply the settings and press ok.....

You will see the folder options are removed......

If not then restart ur computer and check it again.....
[NOTE: This tutorial is only for XP users]