Using the example you provided:
Can't be like this:
[folder] 1)
[folder] 2)
[file]      3)
[file]      4)
Must be like this:
[folder] 1)
[folder] 2)
[file]      1)
[file]      2)
 
I don't remember much from IRC (it's over a couple of years I've used it), what do you mean by putting a # ? 
@ SonicSam: you seem to be the only one with the problem 

 What OS are you using ? Maybe there's some limitation in the way your OS handles Scripting.FileSystemObject ... I really dunno :X