1. Even after a directory in the top level folder (root directory) is deleted, it appears in the left ("Folders") panel

2. If I create "new folders" multiple times - ie by right clicking in the files are and select New > Folder, it only creates one instance of it (i think it tries to name them both as "New Folder" and fails after the frist time) 

hey Sri - what browser/platform?

happened on Firefox 2.0.0.3 - Redhat FC 2.