Scott, I was looking for the same info but could not find someone that
said, "Here is how you to get 'Edit...' and 'Remove' to not be greyed
out."

But from this website I was able to piece together what to do.

http://www.geocities.com/budallen98_...20EDIT%20FLAGS

***EXPORT these keys before making any changes. Do at your own
risk.***

Start > Run > regedit

For "File Folder"
1. Navigate to the following key: HKEY Classes Root > Directory >
EditFlags
2. Modify EditFlags from 1d2 to 2

For "Folder"
1. Navigate to the following key: HKEY Classes Root > Folder >
EditFlags
2. Modify EditFlags from 3d2 to 2

Or past the following into Notepad and create a file that ends .reg

Windows Registry Editor Version 5.00

[HKEY_CLASSES_ROOT\Directory]
@="File Folder"
"EditFlags"=dword:00000002

[HKEY_CLASSES_ROOT\Folder]
@="Folder"
"EditFlags"=dword:00000002


Note: I did have trouble editing already existing items but the ones
I manually created from "Folder Options/File Types/Advanced/Edit File"
were easily editable.

Enjoy!