Unable to set Default open behavior for browser-enabled documents: as open in the client application

All,

i am trying to set open in client application option for

Default open behavior for browser-enabled documents: in one of the document library in site template of Project server(PWS#0), it is keep on giving error message saying that

Folders are not allowed for this list template.

when i check logs, it says access problem of

Getting Error Message for Exception System.Web.HttpUnhandledException (0x80004005): Exception of type 'System.Web.HttpUnhandledException' was thrown. ---> Microsoft.SharePoint.SPException: Folders are not allowed for this list template.
at Microsoft.SharePoint.SPList.set_EnableFolderCreation(Boolean value)
at Microsoft.SharePoint.ApplicationPages.AdvancedSettingsPage.BtnSaveAdvancedSettings_Click(Object sender, EventArgs e)
at System.Web.UI.WebControls.Button.RaisePostBackEvent(String eventArgument)
at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
at System.Web.UI.Page.HandleError(Exception e)
at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
at System.Web.UI.Page.ProcessRequest(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
at System.Web.UI.Page.ProcessRequest()
at System.Web.UI.Page.ProcessRequest(HttpContext context)
at System.Web.HttpApplication.CallHandlerExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute()
at System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously)

S.Venkata Appaji

Unable to set Default open behavior for browser-enabled documents: as open in the client application

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