Folders – draging and droping causes mulitple ‘Folders’ to be created

We have a problem here with dragging and dropping of folders in the users mailfile, somehow the folders get messed up, and it creates a second ( or third etc. ) ‘Folders’ folderEg

-Folders

-Folders

	-Folders

		+New Folder

And then it does not allow the user to drag and drop the folder anymore. We have tried purging all views, doing a fixup f and a compact with c d & i options. We have also upgraded the folder design and also replaced the database template.

If you try to go to the folders using Go to… from the view menu, you get an error: View is not valid

Any idea?

Info: Client, is Notes 8.0.2 CCH2 on Windows XP SP3 and it is on Domino 8.0.2 on Win2K3 R2 SP2