Our setup is the following:
Server: Windows Server 2008 running Sharepoint 2007 with GetOrganized on top.
Client: Windows Server 2008 acting as a terminal server for employees. On this server we have enabled the 'Desktop Experience' and made sure the 'Web Client Service' is up and running.
Our problem is that when we're handling documents and you click Actions -> Open in Windows Explorer nothing happens - no error message, no exclamation marks, nothing.
We're using IE8 on the terminal server.