Hi Rick - Fancy meeting you here!
Sad truth of the matter, is Activ doesn't support folders. I know, it's great for a lot of reasons, but that is a major downside. I don't think Sunil has it in the works for the next revision, either. I could be wrong.
I believe (it's been a while now) WebCompiler handled projects with folders (such as Webhelp). But if I also recall, RoboHelp's V. 5 Webhelp didn't take kindly to being in any other frames but it's own. Maybe v6 or v7 has addressed that?
To those who are wondering what the heck I'm talking about, we both build Webhelp information systems using RoboHelp, now from Adobe. Wrapping those systems inside an ebook was to be a useful alternative to .chm files and such.
PS. - I did answer your email (I get a lot of spam in that account, so I didn't find it right away - sorry).