kode54's guess is completely correct.
QUOTE(tool++ @ Oct 19 2006, 21:54)

When I drag a folder from windows explorer into foobar's playlist, instead of adding the files recursively in the folder, it just adds the folder as if it were a file?!
How do I fix?
QUOTE(tool++ @ Oct 25 2006, 23:47)

mine works if I restart, but then comes back every so often :/
after a little debugging of my foo_input_mslive, the cause of the problem 100% sure is foo_input_matroska.dll
I have no clue of under what situation this bug occurs, it seems to be random.
now what you can do is either remove foo_input_matroska.dll or live with it until this bug is fixed.
QUOTE(mazy @ Oct 25 2006, 20:47)

i had the same problem and it was gone when i removed foo_input_mslive.dll
no, the problem is still with you. just try adding a folder, restart foobar, and add a folder again, restart foobar..........
eventually you will see the bug.