I never noticed anything weirdo with folders. Should work no problem.
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Also, using a SD card seems to use up more battery on the jetBook. Anyone know if this also true on the Gen3? I prefer to just leave the device ON rather than off/on so that it is ready to read - a great advantage of eink in my opinion, but I am just concerned that the SD card may be draining power...
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As far as I know, the gen3 goes into sleep mode. SD card should not change anything