FlashFXP doesn't lock folders.
Windows is able to determine which files/folders are being accessed and will prevent you from renaming/deleting if there might be a problem.
I did some testing under windows 2000 Pro and I was unable to reproduce the problem. In most tests I was even able to rename the folder while FlashFXP was still in it. Perhaps the results under WinXP are different, I am unable to test that at this time.
The local view shell is more complex then it appears, any shell extensions you have installed are executed/active within FlashFXP, it is possible that one of these shell extensions is acessing the file/folder even after FlashFXP has left.
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