in (my) winxp/sp2, the C:\Documents and Settings\ACK\Local Settings
always appears 'hidden'. i want it to be shown always. so in its properties, i unchecked the 'hidden attribute' and applied. the attributes were applied. sure it was shown.
but when i restarted, it again reverted to being 'hidden'.
May be because of the desktop.ini file situated in that folder.
Try to remove the 2nd line from this file, saying LocalizedResourceName..........
U can also try to set the attribute unhidden only for the main foler Local Settings and not for its sub-directories and files.