I upgraded from 0.6 to 0.7RC5 and no longer see “Folders” in the Browse/Local Media view. I have changed the way I mount my local hard drive. It is now mounted under /mnt with a soft Symlink to the MP3 folder on that drive in /music/MusicBox so maybe there’s something in that configuration that prevents it. It has scanned all the subfolders and files ok, I just can’t browse by Folder.
(Thank you so much to all the creators of MusicBox by the way - I absolutely love it)