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With the release of Windows 98, Windows Explorer became based on Internet Explorer technology, most notably with the addition of navigation arrows (back and forward) for moving between recently visited directories. Many see this as another example of Microsoft's anti-competitive tactics of tying their software applications into the operating system. Still, it has proven to be a useful feature that has been emulated by other file browsing systems. In Windows Me, the navigation arrows are smaller than in Windows 98.

In Windows XP, Windows Explorer is significantly different than in previous Windows versions; by default, the Luna interface is used but can be turned off if desired.

Windows Explorer has the option to provide thumbshots of graphic files, and of the rendering of HTML-files including graphic files and other HTML-files referred to.

This can be done:

• one-by-one, in a detail panel showing details about a selected file; in Windows 98 a HTML-file can be edited to customize the detail panel, e.g. the size of the thumbshot
• of all files in a folder, with the view-miniatures setting
• within a folder pictogram, of up to four files in that folder