Obviously it still erases the character to the left of your cursor. But when you're viewing folders in Windows Explorer, Backspace no longer moves you "up" a folder in the hierarchy like it did in Windows XP. Instead, it takes you back to the previous folder you were viewing, which isn't exactly the same thing.
It's a minor hassle, to be sure, but one that shortcut purists will undoubtedly bemoan once they make the move from XP. Fortunately, there's an AutoHotkey-powered solution.
AutoHotkey, in case you missed my last two posts, is a free macro/scripting tool that can automate tasks, remap keyboard keys, and so on. Yesterday you learned how to use AHK to auto-complete text as you type.
Over at the How-To Geek blog, there's an AHK script that makes the Backspace key function in Windows Vista/7 the same way it did in XP--from a folder-navigation perspective, that is.
I won't regurgitate the steps here, as they're perfectly clear over there. Suffice it to say, if you want your Backspace key to work the way it used to, AutoHotkey offers a free and easy answer.
Don't forget to check back tomorrow and Friday for more AHK goodness!