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Why Inbox nested subfolders?

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I just created a new IMAP account. Unlike the other IMAP account (see image 1) I have the new one has nested subfolder (see image 2).

Can I change it to remove nested subfolder or is this a property set by the email server?

I just created a new IMAP account. Unlike the other IMAP account (see image 1) I have the new one has nested subfolder (see image 2). Can I change it to remove nested subfolder or is this a property set by the email server?
Attached screenshots

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Should read

Unlike the other IMAP account (see image 2) I have the new one has nested subfolder (see image 1 & 3).

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This might be fixed by opening Tools/Account Settings, Server Settings for the account, Advanced..., and changing the 'IMAP Server directory'. For gmail accounts, you would set this to [Gmail].

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I see in the other IMAP accounts the 'IMAP Server directory' empty

However, I see that "Personal namespace" is set to "" in the non-problemtatic one whereas the in the problematic account it is set to "INBOX."

Should I set the "Personal namespace" to ""?

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You can try it, but review the 4th paragraph here:

http://kb.mozillazine.org/IMAP:_advanced_account_configuration

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Thanks - I will give it a read. Not sure I understand some of it