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My understanding is that the current version of firmware does not allow us to see the folder names. This is something they are working on for future firmware releases. I also have all my books stored by subject matter, I just have to kinda guess where I am by the books showing on the screen and my knowlege of how I set up my naming convention. It's not perfect, but it's better than nothing.
*Fingers Crossed* for a firmware update soon that addresses folders or at least groupings of eBooks.
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