I'm using the latest 4.1.3, and the ability to add folders to the hosts pane is AWESOME! Makes my life easier, that's for sure. :) Only 1 problem, if you have enough hosts to cause the pane to scroll, you are unable to drag a host up or down past the current scroll position.
Steps to Reproduce:
1) Have enough hosts to cause the hosts pane to get a scrollbar
2) Create a new folder (it appears at the top of the list)
3) Scroll to the bottom of your list
4) Try to drag the last entry all the way to the top to place it in the new folder.
Results:
Unable to scroll up window pane.
Expected Results:
When you drag a host to the top of the pane, it should scroll up so that you can move the host to the top.