This has buffaloed me for some time but with the aid of an article I read I may have a solution - at least it has been so for a few days. Below is my solution for x64.
Open Windows Explorer and right click any file in the left pane. Select Properties>Customize, and from the drop down menu select Documents so the machine knows what it is customizing. Check for subfolders. Click ok and manually maximize the window.
Right click anywhere in the right pane. Click View>List (or another choice).
Select Organize>Folder and Search Options>View>Apply to Folders. Click Apply.
Hope this works for you.