Sorry I didn't answer the folder quantity question..

However I don't know what the answer to that is. I've never tried to overload it. It's always made sense to me to just have a few, since I'll only work on a few projects at a time.
Why did VS X3 present you with the Generic Images folder is one of the many great mysteries as to why VS X3 does or doesn't do things. I pulled up my VS X3 on my desktop (WinXP) and added several folders, imported photos in to each of them. Every time I select a specific folder it presents me with the correct one. This could be a corrupt database (*dat) file causing this. It would require re-installing to correct it.
No, sadly since there is a major change in the Library structure, you can not use the Library Export/Import to move them from VS X3 to X4. There is a workaround for this.
- Load all your photos from a Library into the timeline in VS X3.
- Save the project, maybe with the name used for the Library folder
- Do this for all Libraries you wish to move
- Now open VS X4, open one of the projects from VS X3.
- Create a Category Folder (Library), you will not need to create separate folders for your video, photos and audio. For example if your project is about a vacation you took, create one folder with an appropriate name.
- Now drag all the clips (photo, video or audio) from the timeline to the newly created Folder.
- VS X4 still uses a separate Library for Titles. If you have customized titles you've created you will need to go to the Titles Library in VS X4 and create folders there. I don't know why they kept this separate. In VS X4 you're able to drop a text/title onto any video track.
- Repeat as necessary until you have migrated all.
That's a workaround, that one of the members found since the Export/Import does not really allow migrating between versions. Part of the reason could be that
all libraries including the filters, transitions, effects are included with this. Those also change from version to version, and causes the conflict. I think that Corel should make it so we can export/import specific libraries,
AND make it so it can be used to migrate from one version to the next.