Windows Vista features lot of UI changes when compared to previous Windows versions. Apart from the visual changes, there are many hidden features in these UI. One such feature is the groups and stacks in Windows Explorer. The Vista Explorer has few headings on the top of folders. These are basically Name, Type, Date Modified, Size and Tags.
Click on the menu at the end of the Type and you can see sub menu. When you click group, files are grouped based on Type. At the same time, if you select group from Name menu, then files are grouped based on name.
Another feature in Vista is Stack. When you do a Stack by type, then files are ordered based on file type. Double clicking on the stack will open up all of the corresponding files.
To conclude, the new file management system is Vista is very much improved when compared to XP and its not just the basic ordering what you find in Vista.
