I upgraded my K3 from R.C.1 to 2012-02-11.C5823.rtm. All went well and my Kindle is working fine but this version seems to have broken folders; all my books are listed beginning at the home page (30 pages!).
I upgraded by deleting the previous DK_System folder and dragging the new one to replace it.
Does anyone still have folders after the upgrade?
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