The TiVo software, on the TiVo itself, has some issues with folders coming over the network. Programs like pyTiVo and Galleon use them anyway but they're wonky and can cause strange UI behavior. I'm guessing that the TiVo Desktop team is waiting on the TiVo software team to fix those issues before they implement real folders.
If you're planning on transferring a specific movie/program the easiest way around this problem is to keep all your DivX files in a folder away from My TiVo Recordings. Then copy a shortcut to the movie/program you want to transfer into My TiVo recordings and it will show up on the TTCB list. When it's done delete the shortcut and it will go away from the TTCB list. This saves the processing time as well as making it easier to find the program you actually want.
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