I think Jerbear has a different issue, but your synopis of mainfolder would be correct.
Here's how I understand it.
1. There are existing
WLM folders that Jerbear want to consolidate a new MainFolder.
2. DragDrop in WLM "works" but the next time WLM is launched, the original folders are recreated in the appdata...\Windows Live Mail tree
3. The new DragDropped folders are still also in the new MainFolder
That's as far as I took it. I could have put msgs in the new MainFolder\subfolders using WLM to see what folder actually received the msgs. In other words, I don't know if the recreated are the containers for msgs or the new subfolders are the containers or if the recreated ones are just ghosts WLM created.
I thought that Jerbear could just create the directory tree desired inside of WLM and move the msgs from old to new
That solves the tree structure, but the original foldeer0x are created even if I delete them, if memory serves. This solution depends on two things 1) how many machines does this affect and 2) how attached is Jerbear to the presentation of WLM folders from an Explorer standpoint. Everything looks ok from inside WLM.
It's definitely a workaround and it might get confusing doing import msgs since you have a number of folder0x - but it would solve the dilemma.
There's a bug, ya think?