I think XP does what you want it to do.
All XP folder windows have picture smarts built into them. To enable this, right-click any closed folder, choose Properties, and click the Customize tab. Under the "What kind of folder to you want?" header, choose "Pictures (best for many files)" from the drop-down menu, and click OK. Then simply open the folder and click on any image file. You'll have a large preview of the image in the center of the file window. And you can scroll horizontally and click any image file to see its preview. The folder customize options include two types of picture folders, three types of music folders, and one document folder type. When you choose among these types of folders, you're also changing a list of context-sensitive clickable actions that appear in a column on the left side of the folder window. There's even an option to change the icon for any folder (not just a shortcut to it), and even make a new icon the default for all folders.