diff --git a/reactos/dll/win32/shell32/she_ocmenu.c b/reactos/dll/win32/shell32/she_ocmenu.c
index 433059f6d74..e1fe2909c90 100644
--- a/reactos/dll/win32/shell32/she_ocmenu.c
+++ b/reactos/dll/win32/shell32/she_ocmenu.c
@@ -23,7 +23,7 @@
 #define COBJMACROS
 #define NONAMELESSUNION
 #define NONAMELESSSTRUCT
-//#define YDEBUG
+#define YDEBUG
 #include "winerror.h"
 #include "wine/debug.h"
 
@@ -588,6 +588,7 @@ SHEOW_LoadOpenWithItems(SHEOWImpl *This, IDataObject *pdtobj)
     LPCITEMIDLIST pidl; 
     WCHAR szPath[MAX_PATH];
     LPWSTR szPtr;
+    static const WCHAR szShortCut[] = { '.','l','n','k', 0 };
 
     fmt.cfFormat = RegisterClipboardFormatA(CFSTR_SHELLIDLIST);
     fmt.ptd = NULL;
@@ -619,11 +620,18 @@ SHEOW_LoadOpenWithItems(SHEOWImpl *This, IDataObject *pdtobj)
         ERR("no mem\n");
         return E_OUTOFMEMORY;
     }
+    if (_ILIsFolder(pidl_child))
+    {
+        TRACE("pidl is a folder\n");
+        SHFree(pidl);
+        return E_FAIL;
+    }
+
     if (!SHGetPathFromIDListW(pidl, szPath))
     {
         SHFree(pidl);
         ERR("SHGetPathFromIDListW failed\n");
-        return FALSE;
+        return E_FAIL;
     }
     
     SHFree(pidl);    
@@ -632,6 +640,12 @@ SHEOW_LoadOpenWithItems(SHEOWImpl *This, IDataObject *pdtobj)
     szPtr = wcschr(szPath, '.');
     if (szPtr)
     {
+        if (!_wcsicmp(szPtr, szShortCut))
+        {
+            TRACE("pidl is a shortcut\n");
+            return E_FAIL;
+        }
+
         SHEOW_LoadItemFromHKCU(This, szPtr);
         SHEOW_LoadItemFromHKCR(This, szPtr);
     }
diff --git a/reactos/dll/win32/shell32/shv_item_cmenu.c b/reactos/dll/win32/shell32/shv_item_cmenu.c
index 87e0a42fa71..0c0fec26f76 100644
--- a/reactos/dll/win32/shell32/shv_item_cmenu.c
+++ b/reactos/dll/win32/shell32/shv_item_cmenu.c
@@ -382,20 +382,19 @@ static HRESULT WINAPI ISvItemCm_fnQueryContextMenu(
 	    _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_OPEN, MFT_STRING, "&Select", MFS_ENABLED);
 
       TRACE("rfg %x\n", This->rfg);
-	  if (This->rfg & SFGAO_BROWSABLE)
+
+	  if (This->rfg & SFGAO_HASSUBFOLDER)
 	  {
-   	      if(This->bAllValues)
-	      {
-	          _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_OPEN, MFT_STRING, "&Open", MFS_ENABLED);
-	          _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_EXPLORE, MFT_STRING, "&Explore", MFS_ENABLED);
-	      }
-	      else
-	      {
-	          _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_EXPLORE, MFT_STRING, "&Explore", MFS_ENABLED);
-	          _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_OPEN, MFT_STRING, "&Open", MFS_ENABLED);
-	      }
+          /* FIXME 
+           * check if folder hasnt already been extended
+           * use reduce verb then
+           */
+
+          _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_EXPLORE, MFT_STRING, "&Explore", MFS_ENABLED);
 	  }
 
+      _InsertMenuItem(hmenu, indexMenu++, TRUE, FCIDM_SHVIEW_OPEN, MFT_STRING, "&Open", MFS_ENABLED);
+
 	  SetMenuDefaultItem(hmenu, 0, MF_BYPOSITION);
 
 	  if (This->rfg & (SFGAO_CANCOPY | SFGAO_CANMOVE))
@@ -669,7 +668,7 @@ static void DoProperties(
 HRESULT
 DoShellExtensions(ItemCmImpl *This, LPCMINVOKECOMMANDINFO lpcmi)
 {
-    HRESULT hResult;
+    HRESULT hResult = NOERROR;
     UINT i;
 
     TRACE("DoShellExtensions %p verb %x count %u\n",This, LOWORD(lpcmi->lpVerb), This->ecount);
@@ -679,9 +678,12 @@ DoShellExtensions(ItemCmImpl *This, LPCMINVOKECOMMANDINFO lpcmi)
 
         hResult = cmenu->lpVtbl->InvokeCommand(cmenu, lpcmi);
         if (SUCCEEDED(hResult))
-            return hResult;
+        {
+            break;
+        }
     }
-    return NOERROR;
+    TRACE("DoShellExtensions result %x\n", hResult);
+    return hResult;
 }
 
 
@@ -873,7 +875,7 @@ SH_LoadDynamicContextMenuHandler(HKEY hKey, const CLSID * szClass, IContextMenu*
       cmobj->lpVtbl->Release(cmobj);
       return FALSE;
   }
-  hr = shext->lpVtbl->Initialize(shext, pidlFolder, pDataObj, hKey);
+  hr = shext->lpVtbl->Initialize(shext, NULL, pDataObj, hKey);
   if (hr != S_OK)
   {
       TRACE("Failed to initialize shell extension\n");