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#11
Not exactly but i see what your getting at.
In XP when you expand a folder in the navigation pane and you don't have enough screen space to display the sub folders it jumps to the top.
In windows 7 that behavior is not consistent, sometimes it jumps the wrong direction. Closing the folder and expanding it again will get it to jump in the correct direction, but i can see how that would be annoying.
I can't see how that behavior would be "as intended" i would consider it a bug.