If possible, I would love to see this thread reopened. http://forums.macrumors.com/showthread.php?t=274241&page=11 Contrary to what the last poster / mod said in this thread before it was closed, this is not a dead issue. I am using mountain lion, [I never did use Lion where this issue was supposedly fixed] and there is NO folder merge. This is basic functionality which has been left-out is my single MOST hated thing in OSX, and has been for many years. It drives me mad , and I'm sure a lot of other people too.