I have been using apple script for updating display for files and folders in finder. This is simplified version of that script:
tell application "Finder"
tell window 1 to update items
end tell
I can see that since 10.8 (Mountain Lion) update command is not properly executed or is not executed at all. Until 10.8 everything was working perfectly - Immediately after update command all icons got redrawn. I use this for showing overlay icons.
Have any of you encountered same problem? I blame finder having changed apple script api, because, if I touch -a -m file, it gets updated. So there is for sure some way to update it.
I am having the same exact issue as you. I was about to release my application once I built it with the 10.8 SDK, but Mountain Lion just broke both my "Refresh Finder Windows" and "Show/Hide Hidden Files" menu options. I have tried everything to no avail. The only thing that seems to help is if you wait 60-90 seconds before writing to the Finder Preferences again.
In Terminal:
defaults write com.apple.Finder AppleShowAllFiles TRUE && killall Finder
Wait about a minute to a minute and a half, then reverse the command like so:
defaults write com.apple.Finder AppleShowAllFiles FALSE && killall Finder
(I don't know how to refresh Finder via Terminal, but maybe that delay will help you out in some way.)
That is the only way I currently know of to get the Finder windows to do anything I want them to. Very frustrating; I hope someone can figure this out soon or one of my major selling points just vanished.
-Chris