Thank you all who replied.
I was aware of the "folders" button as well as selecting "explore" (right click) instead of open (left click) but all these solutions are a two-clicks operations. In Windows Vista it can be a one click operation i.e. I can left click on the drive and have a two-pane window open without additional steps (I can set it up as either one or two pane window by making a selection in the "organize" menu). However, I do not know how to do it in XP, if at all possible.
Wojtek