New folders appearing under Trash

["josh@xxxxxxxxxx" <josh@xxxxxxxxxx>]

Whenever I create a folder as a subfolder to the INBOX, it appears under Trash.

How can I get these folders to show under the INBOX?

Also, strangely, the new folders have a font color of black instead of the normal folder color.

CentOS release 5.5 (Final)

SquirrelMail version 1.4.8-5.el5.centos.10 installed via YUM

Installed Plugins

    1. delete_move_next

    2. squirrelspell

    3. newmail

Web Server version: Apache/2.2.3  Server built:   Aug 30 2010 12:28:40

squirrelmail.noarch                       1.4.8-5.el5.centos.10

dovecot.x86_64                            1.0.7-7.el5

postfix.x86_64                            2:2.3.3-2.el5.centos.mysql_pgsql

postfix.x86_64                            2:2.3.3-2.1.centos.mysql_pgsql

postfix-pflogsumm.x86_64                  2:2.3.3-2.1.centos.mysql_pgsql

$sendmail_path          = '/usr/sbin/sendmail';
$sendmail_args          = '-i -t';
$pop_before_smtp        = false;
$imap_server_type       = 'uw';
$invert_time            = false;
$optional_delimiter     = 'detect';
$encode_header_key      = '';

$default_folder_prefix          = '/var/mail/';
$trash_folder                   = 'Trash';
$sent_folder                    = 'Sent';
$draft_folder                   = 'Drafts';
$default_move_to_trash          = true;
$default_move_to_sent           = true;
$default_save_as_draft          = true;
$show_prefix_option             = true;
$list_special_folders_first     = true;
$use_special_folder_color       = true;
$auto_expunge                   = true;
$default_sub_of_inbox           = false;
$show_contain_subfolders_option = true;
$default_unseen_notify          = 2;
$default_unseen_type            = 1;
$auto_create_special            = false;
$delete_folder                  = false;
$noselect_fix_enable            = false;

$data_dir                 = '/var/lib/squirrelmail/prefs/';
$attachment_dir           = '/var/spool/squirrelmail/attach/';
$dir_hash_level           = 0;
$default_left_size        = '150';
$force_username_lowercase = false;
$default_use_priority     = true;
$hide_sm_attributions     = false;
$default_use_mdn          = true;
$edit_identity            = true;
$edit_name                = true;
$hide_auth_header         = false;
$allow_thread_sort        = true;
$allow_server_sort        = true;
$allow_charset_search     = true;
$uid_support              = true;

$plugins[0] = 'delete_move_next';
$plugins[1] = 'squirrelspell';
$plugins[2] = 'newmail';
$plugins[3] = 'change_sqlpass';

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