>>I added folders in the Solution Explorer for various components in my app. When I create a new class in a folder, the folder name is appended to the namespace.
>>
>>Any way to prevent this?
>
>I haven't asked this question yet, but am interested in the answer also.

You have to either create your own VS template or modify the existing set.

Here's how to create your own:

http://www.rcs-solutions.com/blog/2008/11/27/VisualStudioTemplates.aspx

To edit the default on, take a look in this folder:

C:\Program Files\Microsoft Visual Studio 8\Common7\IDE\ItemTemplatesCache\Web\CSharp\1033\class.zip

There are zip files that contains Class.cs - edit that one.