OK, RC1 appears to have fixed both the expansion to display existing
folder structure and 'New Folder' issues.

Still get the same issue of
On first instance of wanting to access an existing bookmark from the menu a 
dialog box is displayed offering to bookmark the current page (whatever that 
may be, not just home page).
Selecting 'cancel' closes the box and from that point on selecting bookmarks 
from the menu gives access to the existing bookmarks.

-- 
bookmarks copies home page over and over
https://bugs.launchpad.net/bugs/213528
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