After a folder is created in a new course, this results: I can verify that I did not have any boxes turned on- they were both UNCHECKED in the time stamp option.Then when I go back one level by hitting modify, the boxes are set.

I reset them to disable the check boxes:


I submit and this is what I still get:

The only way I can get it to set the folder to available is to set the top time stamp box to some previous date. Then it works.