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Description:  

Hides the Active Directory folder in Network Locations.

The Active Directory folder displays Active Directory objects in a browse window.

If you enable this setting, the Active Directory folder does not appear in the Network Locations folder.

If you disable this setting or do not configure it, the Active Directory folder appears in the Network Locations
folder.

This setting is designed to let users search Active Directory but not tempt them to casually browse Active
Directory.

Supported on: Windows 2000 only.
Hide Active Directory folder
Description Gpedit Regedit CMD Back VBScript PowerShell Script
Gpedit:   

Please perform the following steps:

Please go to Pearl button (Start) and click on the Search programs and files
For more information about the change from Start to Pearl button click here
Type gpedit.msc and press Enter
In the Group Policy window please navigate to User Configuration -> Administrative Templates ->
Desktop -> Active Directory and open Hide Active Directory folder.
Not Configured -> is the Default state
Enabled -> apply this GPO
Disabled -> this GPO will not be applied

To finish press ok button and close Group Policy window.
Type regedit and press ok
Please confirm User Account Control pop-up
Microsoft official disclaimer

Warning Serious problems might occur if you modify the registry incorrectly by using Registry Editor or by
using another method. These problems might require that you reinstall the operating system. Microsoft
cannot guarantee that these problems can be solved. Modify the registry at your own risk.

Note: This registry key is created by Group Policy when this GPO is Enable. The GPO Default state is Not
Configured -> this registry entry is not present. For Disable this registry entry is not present.

Please navigate to HKEY_CURRENT_USER\Software\Policies\Microsoft\Windows\Directory UI and
locate
HideDirectoryFolder registry key
Regedit:          

Please perform the following steps:

Please go to Pearl button (Start) and click on the Search programs and files
For more information about the change from Start to Pearl button click here
   
   
Double click on HideDirectoryFolder and edit the value:

To Enable:
Change the data value with:
HideDirectoryFolder = 1

To finish press ok button and close Registry Editor window

Note: Manual editing of this registry key will not be reflected in Group Policy. If you modify this GPO from
Group Policy this registry key will be rewritten.
Type cmd, right click on cmd icon under the Programs and click on Run as administrator
Please confirm User Account Control pop-up
Please select, right and copy a registry key from below, then right click on command prompt window
, select Paste and press Enter

Enabled:
REG add "HKCU\Software\Policies\Microsoft\Windows\Directory UI" /v HideDirectoryFolder /t REG_DWORD /d 1 /f

Not Configured:
REG DELETE "HKCU\Software\Policies\Microsoft\Windows\Directory UI" /v HideDirectoryFolder /f

Note: Manual editing of this registry key will not be reflected in Group Policy. If you modify this GPO from
Group Policy this registry key will be rewritten.
CMD:          

Please perform the following steps:

Please go to Pearl button (Start) and click on the Search programs and files
For more information about the change from Start to Pearl button click here
   
VBScript:          

Const HKEY_CURRENT_USER = &H80000001
strComputer = "."
Set oReg=GetObject("winmgmts:{impersonationLevel=impersonate}!\\" & _
strComputer & "\root\default:StdRegProv")

strKeyPath = "Software\Policies\Microsoft\Windows\Directory UI"
oReg.CreateKey HKEY_CURRENT_USER,strKeyPath
strValueName = "HideDirectoryFolder"
'Enabled
dwValue = 1
oReg.SetDWORDValue HKEY_CURRENT_USER,strKeyPath,strValueName,dwValue
'Not Configured
'oReg.DeleteValue HKEY_CURRENT_USER,strKeyPath,strValueName
   
PowerShell Script :          

Enabled

$RegKey = "HKCU:\Software\Policies\Microsoft\Windows"
If(Test-Path ($RegKey + "\Directory UI"))
{
 $RegKey = "HKCU:\Software\Policies\Microsoft\Windows\Directory UI"
  ##Enabled
  New-ItemProperty -path $RegKey -name HideDirectoryFolder -value 1 -PropertyType DWord -Force
}
else
{
 New-Item -path $RegKey -name "Directory UI"
 $RegKey = "HKCU:\Software\Policies\Microsoft\Windows\Directory UI"
  ##Enabled
  New-ItemProperty -path $RegKey -name HideDirectoryFolder -value 1 -PropertyType String
}

Not Configured\Disabled

$RegKey = "HKCU:\Software\Policies\Microsoft\Windows"
Remove-ItemProperty -Path($RegKey + "\Directory UI") -name HideDirectoryFolder
If( (Get-Item -Path($RegKey + "\Directory UI")).ValueCount -eq 0 -and (Get-Item -Path($RegKey + "\Directory UI")).SubKeyCount -eq 0)
{
 Remove-Item -Path($RegKey + "\Directory UI")  
}
   
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Result
Result:

Need test pictures.
Verify code.