I have used the thumbnail view in my pictures folder for years and it has always shown four images in the folder and the name of the folder beneath it. Today the folder names are no longer there. I'm fairly windows literate and embarrassed that I couldn't figure something out so simple.
Sorry, I tried to figure out how to make the names go away, without success. I, too, am fairly well versed in Windows controls, but didn't find a "Don't display folder names" option anywhere. I guess that it could be a hick-up in the registry (or worse - I really hope not).
Dare you try a System Restore, just for kicks (say to yesterdays checkpoint)?