There are many different types of folders, each one best for its type of contents.

There are separate image folders that serve as an album, music that have an alphabetical playlist and document folders which display a table of the documents within. The tools and options on the left sidebar are also different for each type of folder.Folder Types - Cool Windows XP tips & tricks

Your XP looks at what types of files there are in a folder and turns the folder into what it thinks is best for the content, but sometimes it can make mistakes. To specify which type you want the folder to be, right-click it, select properties and choose the customize tab. Select the type you want from the list of templates.

If you want to simplify visual navigation, press the change icon button in the same window and choose a suitable icon for the type of folder it is.

Source :- Xptricks