Well, if it works from the Windows Explorer it could solve the problem for someone but not in all scenarios. We use the web folder view for a WebDAV URL in an iframe on HTML pages. It works in IE6 and IE7 but in IE8 not anymore. Installing the
http://support.microsoft.com/kb/907306 which adds the support to Windows does not help. Googling about this issue reveals that more people experience the problem after upgrading to the final IE8.
I am afraid that until it is fixed or at least explained, the IE8 is a no-no for us and our customers.