I'm curious about this as well. I use folders when the container is
not a task in itself, not actionable, to group other tasks that might
not relate to each other in their actionability -- they are unrelated
actions that all are grouped together around some other axis.  For
example, I have folders for each major area of my life. I will have
several tasks that all are "Life Maintenance" or "Family", but whether
I do one has little effect on the other tasks in that folder; for
example, cleaning the house and grocery shopping are in the same
folder but completely unrelated otherwise.

I use projects as a way to have a large-granularity task which is
broken down into smaller granularity actions, ala GTD. "Son's birthday
party" may include baking a cake, sending out invitations, booking the
location, etc. Often these start as tasks, and then as I break them
down, I'll click the project attribute.

I personally do not have a rigid structure where all levels of the
tree are similar types of containers. "Family" folder may contain
"Birthday party" (project), Schedule vision checkup (task), and
Someday/maybe (folder).

GTD suggests having a list of projects, and the Android version
supports this with the "Projects" and "by Project" views. I've not
taken advantage of these much since I'm not consistent with what I
mark as a project, so I'm looking forward to hearing how other people
use Projects.

-- 
Lisa Stroyan
www.empathic-parenting.com

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