There has been some debate about what to do about these and I think I have
just seen the solution (for me at least)
 
A folder has two characteristics:

*       it does not appear in the ToDo list;  and
*       it does not have a tick box and therefore cannot be marked as
completed - this was added so that one could not accidentally mark a task
which is a place holder as completed - this is a good feature as I had
certainly done this in the past

The problem comes if you have a recurring task set to be a folder - you
can't mark it as done in order to make it reoccur and so this combination
has no use (as far as I can see) and is confusing.  For this reason, it has
been suggested that MLO should prevent a recurring task being marked as
folder.
 
On reflection, I would prefer an alternative option - namely to reinstate
the tick box for recurring folders.  This would allow you to set the due
date for the folder to the next recurrence date but unlike with a
non-recurring task, this would not cause the folder to disappear permanently
from the ToDo view.   However,  the folder itself would not appear in in the
To Do view,  only the tasks which it contains woudl appear.
 
I would use this as follows.    I have a Tasks called phone calls in to
which I put all the non-urgent single phone calls that I need to make.  This
reoccurs daily at 3pm.   At the moment, it is an ordinary recurring task so
it appears in my ToDo list even if I do not have any phone calls to make.
If it had a tick box,  then I could make it folder which would mean that if
it contained any tasks, these would appear in the ToDo list at 3pm but if it
didn't, then it wouldn't appear so I wouldn't be distracted by it.
 
I would have to skip missed occurrences when I did add a new task to it but
this is relatively quick.    Even better would be to add a new option for a
recurring folder:  'Automatically reoccur at due date/time if empty'

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