I had a similar problem which I cured by disabling the WebClient service on all computers on the LAN. Hope this helps
I have a similar problem with a small network using XP pro as a server with a number of Win98 and XP clients. The server was Win98, but was upgraded to XP, after which the XP clients reported very slow directory listing times. The directory structure was very flast with 1000s of small word files. The fix in this case (after much head scratching) was to organise the files with a hierachial structure.
On another network, I discovered a similar issue (still looking at this one). XP workstations have just been introduced. The server is NT4 workstation. One old dos app has a folder with 9000 files in it. The directory takes nearly 60 seconds to list from an XP workstation, but on a few seconds from a Win98 station. Disabling AV etc. makes no difference, and the XP workstation hardware is far superior to the Win98 ones. I found that if I put the same data on a Win 2000 server its fine, but to a Win 2003 server, I get the same problem. I aslso tried XP to XP and got the slow listing problem. If I do a dos dir command, the files listing is jerky. I'm guessing its something that XP negotiates with some systems, and not others.
Almost forgot, I tried the same directory with a 2003 server and a 2000 workstation and it was fine (ie. fast). So, the common element appears to be XP workstation to everything except win 2000 server....