AFAIK, this bug is still exist in 2.8.1.1 and later including 2.9.0.
For now the workaround is
1. start evolution
(no subfolders)
2. go offline with menu
3. go online with icon
(at this point subfolders show up but cannot be accessed)
4. go offline with icon
5. go online with icon
(now subfolders are still there and can be fully accessed)

-----Original Message-----
From: "Mark Strong" <[EMAIL PROTECTED]>
Date: Tue, 17 Oct 2006 07:20:25 +1000
>       tried Evo 2.8.1 the other day, worked ok, except couldn't see any sub
> folders on my exchange server account.  Works ok in 2.8.0.
> Anyone else seen this problem? (or is it just me).
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