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Slow network browsing in Windows XP
 There’s a common problem in Windows XP that can make network
   browsing very slow. 
  
  If the 'My Network Places' folder contains a shortcut to a network share, then 
  each refresh of the explorer window will attempt to read icon information from 
  every file in the remote location, causing the system to slow to a crawl. 
  
  Removing all shortcuts from 'My Network Places' will return the system response 
  to normal. 
  
  Every time you open a file via a UNC name, Windows XP will automatically add 
  another shortcut to the 'My Network Places' folder - so the issue tends to get 
  worse over time. 
  
  You can prevent the automatic addition of shortcuts by setting HKCU\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer\NoRecentDocsNetHood 
  to 1. 
  
  Similar issues affect the Start menu and Desktop - placing a shortcut to a network 
  resource in either location can drastically slow down system response, particularly 
  when the network resource is unavailable. Shortcuts to Domains or Machines 
  don't suffer from these problems as they always have the same icon. 
There are methods of accessing the network that will avoid this 
  performance problem: 
  
  Method 1 
  Create a drive map and use this to browse the network 
  files. 
  
  Method 2 
  Create a shortcut to explorer.exe and pass the UNC name of the resource.
  e.g. 
explorer /e, \\Server\FileShare
desktop.ini
A second issue that will also slow down browsing is the desktop.ini feature. This affects Windows XP clients using mapped drives or UNC connections.
When listing a directory Windows XP will search for and parse Desktop.ini files. This will noticably affect performance when a large number of subfolders are involved - it does this for the current folder and one level down the directory tree.
Desktop.ini can be used to provide
a custom icon, thumbnail view, pop up description and background pattern. 
In
  additions to this 'eye candy' desktop.ini can make normal file
  folders into 'Special
Folders' (eg Fonts, History, Temporary Internet Files, "My Music", "My
Pictures", and "My Documents"). 
Desktop.ini files are only visible in Windows Explorer if you first un-check "Hide protected operating system files" (under Tools, Options, View)
To see the file locks created by this process run the following command on the file server, while an XP client is (slowly) listing a large directory:
NET FILE | Find "desktop.ini"
or
OPENFILES /s MyServer |Find "desktop.ini"
This issue is discussed in Q840309 (included in XP sp2)
Although you can customise desktop.ini the quick solution to this performance problem is to delete the non-essential .ini files:
attrib desktop.ini -h -s
del desktop.ini
Before doing this in bulk you should compare your existing folders with some empty folders that don't have any desktop.ini files to see if this improves browsing response time:
Create a separate (testing) file share,
then create 1000 sub folders - from the command line:
FOR /L %G in (1,1,1000) do md test%G
To delete all desktop.ini files one level below the current directory run the following from the command line:
FOR /f %G in ('dir /b') do attrib %G\desktop.ini -h -s
FOR /f %G in ('dir /b') do del %G\desktop.ini
  Other browsing issues
  If none of the above work then you may have a problem
  either in the transmission of 100-Megabit network packets (Q315237)
  or 
  something may be amiss with the NTFS volume itself ( security descriptors
  or indexes) - running defrag and CHKDSK would
  be a good place to start.
  
  "Total world oil reserves amount to one thousand billion barrels, yearly 
          consumption is 27 billion barrels" - BP 
Amoco 
 Related:
  
  Q320138 - Disable Automatic 
  Search for Network Printers and Folders (XP)
  Q245800 - Delay viewing 
  shares (Windows 98/2000) 
  Q822219  -
  Slow File Server Performance
  Q320829 - Increase
  the Request Size Buffer on the File Server - (try between 32 and 64
  Kb)  
  Q816375 - XP Explorer 
  Pane Flickers
  Q174619 - NTFS Space
for MFT
CleanMgr - Automated cleanup of Temp files, recycle
bin
Resize the icon cache "Max
Cached Icons".