me too... give us folders please asap it is essential for project group work

 I agree with the general consensus - folders are necessary. I'm going even further, I would like to be able to upload folders with documents included.

I hope to use workspaces within a classroom. By providing activities, which students can access during and out of class.

I am currently evaluating officelive workspace and document management is a very important requirement for me.

I am adding my vote to the folder requirement within workspaces and would like to know what Microsoft's project teams plans are for release of this functionality.

folders are a necessity.

I'm and MS guy, but the WebEx office is more practical.  Using Webdav to post documents to folders is more logical, not to mention much faster.

 I work with teams that include semi-technical folks.  Using a website to upload files at ~30 seconds a file is retarded.  Creating directories and having a synch tool go to WebDAV shares is much more usable.

If you can tack on some database functionality on top of logical folders, even better (this may be the first/only real opportunity for WinFS).

Just adding my own support for folders - seems like a no-brainer to me, an obvious feature that probably has been considered very early-on by the folks at MS. I'm sure it'll appear by the time this comes out of the Beta... and I'm looking forward to that! 

Gee, ditto.  I signed up for Workspaces because it says in it's "sales pitch" how you can use it with all Office programs one of which is Powerpoint.  A Powerpoint Presentation is by it's nature a series of files within a folder.  The presentation I wanted to upload has twelve files one of which is a wav sound file.  The folder is 100mb's (five minutes long) and it says in fine print files/folders cannot be more than 50mb's.  Needless to say, as is, I'm not going to be able to use workspaces as it stands presently.  I'm reeeallly disappointed that it really doesn't support Powerpoint. 

I was hoping to use it as a collaborative space for a Writer's Group to share and edit their work.  Also uploaded some pics and the view screen is too small....

Add  my name to the list too. It seems to be an essential, but missing feature to be able to nest folders for grouping files.

I currently have 10 workspaces (that will probably double in the next month). The largest one has 39 files in it - and the reason there is only 39 is that we have resorted to zipping groups of files together to emulate the functionality of a directory structure with folders.

I would also like the ability to Add a folder (already populated with a number of files) in addition to the add single / add multiple file options I have now.

An abosulte must-have: Nested Folders within a workspace. I don't really need them to have sharing properties that are different than the those of the workspace.

Yes,

Subfolders hierarchy is one of major awaiting features.