The thumbnail images found in the Virtual folder are from web pages viewed and they are not the thumbnail files from images saved on the computer.
In Windows Vista and Windows 7, the operating system creates Virtual Folders in Temporary Internet Files to store files that Internet Explorer tries to save in protected locations. So, instead of causing an 'add-on' to fail when it tries to write a data file to the Windows folder or Program Files, Windows Vista and Windows 7 redirect the write operation to a virtual equivalent.
The virtualized folders occur because of the Protected Mode of Internet Explorer.
Enhanced Protected Mode add-on compatibility
Hope this resolves your Query!!
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