Kristin,
Moving the folders does not work. If I move the folders that are in the outer director back to the subordinate file location then I have duplicate folders and assets. If I delete the duplicate folder, then I loose all assets in all folders with the same name. I can't seem to correct this without wiping all my library assets. This folder replication occurred for each level of folder hierarchy that I established. In some cases I have triplicate folders of the same name with the same assets within. I am loosing assets and breaking maps trying to fix this. At this point, I would probably have more luck wiping my entire library and starting over. When when I try to delete some folders, I get and invalid folder reference. I believe because, I had already deleted one of the duplicates and lost the assets within.
BTW, I did post right after the migration from dev to production, but I did not receive any response then.
There has to be another option, as I still can't delete all the invalid folder references even if i wipe my entire library and break all my maps.
Feeling pretty frustrated about potentially loosing hundreds of hours of work, because I decided to organize my library assets to no avail.