Path of Nested Desktop Folder Not Displayed Correctly

MORE INFORMATION

Steps to Reproduce Problem

1. Double-click My Computer, and then click Options on the View menu.
2. On the View tab, click the "Display the full path in the title bar" check box to select it, and then click OK.
3. Create a folder named Test1 on the desktop. Open the Test1 folder, and verify that the correct path is displayed in the title bar, as in the following example:
   

         C:\Winnt\Profiles\<username>\Desktop\Test1
   						

4. In the Test1 folder, create a new folder named Test2. Open the Test2 folder, and note that an incorrect path is displayed, as in the following example:
   

         C:\Winnt\Profiles\<username>\Desktop\Test2