I've been trying to figure this out too. 'Use as defaults' doesn't stick here. Let's say I set up my Application folder the way I like it with sorting order(like Type) and icon size(80px). Now I want to use this setting for every other folder, so I choose 'Use as defaults'. Upon entering my Documents folder or Downloads folder they still use their own setting. The 'Use as defaults' button actually worked in later versions of Leopard.