Folder resource FAQ
If you have a folder with linked files such as a website with an index.html file or a flash activity with xml/swf and index file then you use the file resource instead of the folder resource. See File module settings for details.
You can add a folder to your course by either creating a folder or uploading a zipped file. It is not possible to link to a folder in a repository. See the forum discussion How do we link to an existing directory in 2.0? for more details.
Can I prevent forcedownload behaviour in files in a folder?
Not at present. See this discussion: https://moodle.org/mod/forum/discuss.php?d=184088
See this tracker item: https://tracker.moodle.org/browse/MDL-28501
How can I allow students to upload to a folder I have displayed?
[See this forum post on allowing students to add files to folders| https://moodle.org/mod/forum/discuss.php?d=226831#p985008]