If it's Vista, then it would have to be something odd about the combination of the operating system and some expansion pack that I don't have because nested folders work fine for me when running under Vista.
Or, it could just be that once again we are repeating rumors that started when someone either had a problem and attributed it to nested folders, or just made up the whole thing to see how much grief could be inflicted upon others. As always, if you have not thoroughly tested it yourself, then make sure to note that you are only repeating rumors when you post notes about bugs in the game.
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Who are all these people and what do they know? 
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