So The Magic Folder continues to improve. 

I have lots of ideas and I am knocking them out one by one, but I am also fixing minor issues and even taking some of your suggestions and making them a reality. And for me it is fun because I really like the community aspect of this and I love to develop things and make them better and better…
Anyway, here is the list of improvements for version 1.4:
- Automatic updates – the gadget will check a webservice every 8 hours to see if there is an update. If there is, you will get a flyout that gives you the option to jump directly to the download page and get the new version: http://gallery.live.com/liveItemDetail.aspx?li=0ed6a06a-6782-41a7-b68c-2753fad412a5.
- Updated Settings Pane – take a look at the settings pane. I did a lot of work to organize the look of this and make it better – including a folder previewer. Should look a lot more professional now. Also when there is an update available it will appear on the About tab of the gadget settings.
- Updated Folder icons – I did a better job of coloring the folders and removed the drop shadow. Green looks really nice and green now.
- Improved Flyout graphics – I added a gradient background to the fly-outs to help them stand out more.
- Folder processing – I removed the option to disable this function. Instead by default all folders dropped onto the gadget are processed. In the next version I am going to try to improve on this a little so that when you drag a folder to the gadget with extensions disabled, it will move the whole folder instead of gutting it.
- Medium folders – a comment on the gadget site drove me to add this. You now have the options between: Small, Large and Medium folder icons in either docked or undocked states.
I posted it at 11:00PM CST, so depending on how fast the folks at Live.com get the update posted, it should be available soon. Ususally somewhere around 12 to 24 hours. As soon as it is available, let me know what you think and PLEASE keep the suggestions coming.