I just came across this and thought it was pretty handy...
When you display a document library on your WSS site or a portal area that has folders, you can control how SharePoint handles a click by the user to see the contents of that folder.
If you want the web part to continue to display within the site or area and NOT open up the expanded view of the web part, then in the custom view of the web part in the web part tool pane (Modified Shared Web Part, Edit the Current View) you need to set it to display either:
- Name (linked to document)
- Name (linked to document with edit menu)
Then when a user selects the folder name, it will just refresh the library within the web part to show the folder contents.
If you want the folder click to bring up the expanded view of the library (AllItems.aspx), in the custom view of the web part in the web part tool pane (Modified Shared Web Part, Edit the Current View) you need to set it to display:
When a user selects the folder name, the page will go to the expanded view (AllItems.aspx) of that particular library.