Folder Contents displays the contents of the selected folder on a flyout menu, and lets you open a subfolder or open a file in its default application by clicking its menu item.

Right-click any folder or drive icon and move the pointer to Folder Contents on the ShellToys XP menu. The submenu will show the names of the folders and files contained in the selected folder. Folders appear at the top of the menu with files below, each sorted into alphabetical order.

Click any item to open it. Folders are opened in a new folder window. Files will be opened with their associated application (equivalent to double-clicking the file's icon).