While working with Enterprise Portal, we frequently work with URL menu items required for linking our web pages in EP. These URL Menu Items require the URL path to the web pages created in SharePoint. However, when you try to click on the URL property of the URL Menu Item, you recieve an error “The current operation cannot be completed because an unexpected error has occurred.”, instead you should recieve a screen with web folders so that you can easily navigate to the web part page created in SharePoint.
This error is due to the fact that the Web Folders component in Microsoft Windows operating systems is not up to date. To update the web folders feature in your windows operating system, please apply a patch Software Update for Web Folders (KB907306). Once installed restart the AX Client and try setting the URL property again. This patch will most likely solve the issue.