@Invyl: Thanks for your suggestions.

+1 to the feature and also I have some suggestions about its realization:

1. Select the folder in the tree -> press Shift+Right/Left -> subfolders of the selected folder will be expanded/collapsed by one level
   
   
2. select the folder in the tree -> press asterisk * -> subfolders of the selected folder will be expanded to the very bottom level
   
   
3. select the folders in the tree -> open context menu -> user will have action for collapsing all selected folders (and their subfolders) and action for expanding all selected folders
   

Thanks. 8~)

Thanks for your post. This request has been added to the tracker:
Issue 612 – Optional expanding of directory tree

When I select a directory in the tree, it is automatically expanded. Is it possible to switch this off? I often use the arrow keys to move around the tree, but it is very hard to move down the tree if branches keep expanding – this moves the directory I'm trying to reach further away. Other apps with a tree (e.g. Windows Explorer) only expand if I press + or "right arrow".

I'm using WinSCP v4.2.8, but I've seen this on other previous versions.
I'm on Windows XP SP3.
The same behaviour occurs with Commander or Explorer style UI.