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There are two very common issues when attempting to use the Open with Explorer feature. The first is the easiest to solve.
Grayed Out Open with Explorer Button
To solve this, make sure you are using Internet Explorer. It’s as simple as that.
The more common and difficult issue encountered when attempting to ‘Open with Explorer’ is the following:
“Your client does not support opening this list with Windows Explorer”
This error can be received for many reasons, and sometimes no reason at all. Below are several troubleshooting steps which can be taken in an attempt to resolve this issue. After completing the steps in teach fix, retry the button.
In some instances, when you click Open with Explorer action will give an error on the first attempt, but will work the second time. Simply try clicking Open with Explorer again and confirm whether it opens or not.
Windows XP – 2008R2: Make sure you are using Internet Explorer version 7.0 through 9.0, in 32-bit mode. The 64-bit mode will not work with the Open with Explorer feature
Windows 7: Internet Explorer 10 is not compatible with the Open with Explorer feature. You will need to revert to Internet Explorer 9
Windows 8: Internet Explorer 10 is compatible, so you should not have an issue with this OS and browser version combination.
The User Account Control must be set to the lowest setting in order for to function. Instructions for modifying the UAC are available here: http://technet.microsoft.com/en-us/library/cc709691(v=ws.10).aspx#BKMK_S3