As pictured this new list view has the column headers that are un-clickable, so one can't sort by clicking on the column headers.
Why is the Finder doing this and how do I get it back to the way it is in the deactivated window.
Any suggestions?

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You could also select View > Arrange By > None, press ⌃⌘0, or change the arrange mode from the pop-up menu on the toolbar.
See also Finder: Difference of "Sort by", "Clean Up By" and "Arrange by" - Ask Different. |
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This new different list view is a result of the fact that Apple added a new way to organize and visualize files in a folder in Lion as noted in a article by MacYourself - How to arrange and sort files in Finder using Mac OS X Lion. As a result there is some confusion.
An arragement is set on the list view and that is why the directory looks abnormal. To re-enable column header that can sort one needs to first un-set the currently selected arrangement. A way to stop the arrangement of a list view:
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