TLB v2.2.0.16 RC3 - has been released

So when you drag menu by right button then TLB creates shortcut to folder and reset the "Do not expand" option. So it it impossible to create virtual folder inside My Computer, Printers and other folders that not in file system.

Ok, so my observation was the correct behaviour, right? Virtual folders inside virtual folders only applies to virtual TLB folders that are mapped to actual Windows (file system) folders.... Well, that's ok with me

I was trying to get "Control Panel" inside "My Computer" because it's also there when I double-click on "My Computer" on the Windows desktop...

I noticed that the virtual folder is in fact a shortcut that is created inside the target Windows folder... wouldn't it be much cleaner to store these shortcuts inside the quicklaunch folder... together with the namespace.fld file?

Take this example: "Control Panel" inside "My Documents"... it now creates:
"D:\My Documents\Control Panel.lnk"
where it would be really better to create:
"C:\Documents and settings\username\Application Data\Microsoft\Internet Explorer\Quicklaunch\My Documents\Control Panel.lnk"

On the other hands namespace.fld file must not be created. Do you drag folder from explorer or from TLB?

Hehe, no, not from explorer, I can imagine that will never work

I start with "Control Panel" and "My Documents" icon next to each other on the main toolbar. Then I drag "Control Panel" into "My Documents"... As described above, it creates only a plain folder containing a namespace.fld file.

I can create "Control Panel" by choosing New -> Menu inside "My Documents", and this will work properly...
However I tried dragging this folder back to the main toolbar, and the first time explorer.exe disappeared and restarted. And the next time (yeah, I didn't give up ) only a plain shortcut to the actual Control Panel was created on the main toolbar... it was no longer an expandable menu...

Aargh, this is so complex to understand, I wouldn't even dare to look at the code! :p