Left click on the folder. Drag it up to the account name above an let it go. It will end up as a regular folder in alpha order.
All WLMail questions should be asked here.
Windows Live Mail Forumhttp://www.windowslivehelp.com/forums.aspx?productid=15
Bruce Hagen
MS-MVP Oct. 1, 2004 ~ Sept. 30, 2010
Imperial Beach, CA