Issue:- SharePoint Windows Explorer View not working on IE 8
Env:- Windows Server 2008, Windows 7
Error:- "Your client does not support opening this list with Windows Explorer"
Resolution / Workaround:
1. On Windows Server 2008 Install "Desktop Experience" Feature. This will install the "Web Client service. Keep it to Automatic and make sure its Started.
2. Use IE 8 32 bit version and browse the SP site and check the explorer view. By Default it will open IE 8 64 bit version which continues to give the error regardless the "Web Client" service being started.
Note sure about the difference between this behaviour in IE 8 32 and 64 bit versions. But on both Windows server 2008 and Windows 7, both the versions are installed by default.