After some experimenting I have a slightly different understanding of "next 
action" and the effect of being a project or folder, that I'd like to 
document. This is a continuation of a discussion started by John Smith here 
(https://groups.google.com/d/msg/mylifeorganized/CBwYvB_fAOc/p9xUdsxiM-wJ) 
which I have moved to its own thread in order to get a more meaningful 
title.

The next action for a branch of your outline is the first active task in 
the branch. "First" in this case is based on the order of the tasks when 
viewed fully expanded in an MLO hierarchical view. Consider this tree:
Parent
  |- Child 1
  |  |-Grandchild 1
  |  |-Grandchild 2
  |-Child 2
In this tree, Grandchild 1 is higher than Child 2.

A next action is defined if possible for each branch, defined as an 
item (task, project or folder) which is found at the highest (root) level 
together with the entire hierarchy below it.

An additional next action is defined for any project unless the next action 
for the branch containing the project is already found within the project.

A branch containing no active items has no next action.

One of the seven conditions that make an item inactive is if there are any 
uncompleted tasks in the hierarchy below it. Therefore, an item at the root 
that has any uncompleted descendants cannot be its own next action even if 
none of the uncompleted descendants is active.

Another condition that makes an item inactive is if the item is a folder. A 
folder at the root that has any active descendants will have a next action, 
but a folder cannot itself be a next action.

An item can be a project and a folder at the same time. A folder-project 
like any project will have a next action defined if it has any active 
descendants. When a project has all of its descendants completed then the 
project itself becomes the next action *EXCEPT* where it's a 
folder-project. A folder-project cannot be active and therefore cannot be 
the next action.

The idea that a project title becomes its own next action at the end of the 
project is meaningful and useful to some users while being uncomfortable 
and strange to others. Users who don't like it should make their projects 
into folder-projects and the issue will go away.

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