I just got a 5 and in the heat of downloading all of my apps, I somehow managed to put a folder inside of another one. Now when I try to open the folder it crashes...no option to delete it.
Lol but seriously, iOS doesn't allow you to put a folder inside a folder, so there must be a glitch. I'm afraid the only way to fix this is a full restore.
I just got a 5 and in the heat of downloading all of my apps, I somehow managed to put a folder inside of another one. Now when I try to open the folder it crashes...no option to delete it.
Have you thought of maybe connecting your iPhone to iTunes and moving the folder from there? You can move apps and folders around once synced to iTunes, so it might work.