Do you ever see your folders or even drive name in blue instead of black? No need to panic, because I also came across this the other day there is a logical explanation about it.
Blue means that your files are encrypted (not very likely) or compressed files. It’s a feature of the NTFS file system used by XP. But I have found that people using other type of Windows are also experiencing the same thing. Even the new Windows 7. Blue files can also appear if you run disk cleanup and choose to “compress old files”.
There’s no problem having your files compressed, you can still access them but it’ll cost you a little more time since Windows will have to decompress them when you’ll need those files (you won’t see much difference on accessing one single file though). But if there’s a program you haven’t used for 50 days (default value used by disk cleanup to say a file is “old”) you may find it takes a bit longer to load when you’ll eventually re-use it after running disk cleanup.
It’s yours to decide whether you want more free space or applications that load quicker. If you’re running a personal computer, I don’t see the advantage of using it. Not to mention with the drives are going cheaper and cheaper. So, if you’re like me and want it back to normal or just want it to be black, just right-click the drive or folder and go to properties. Unchecked the “compress the drive to save disk space” box. And voila….