Lee, you're right. My laptop took the installation just fine and the nested folders work as they always have.
On my main (95,000 pics) machine, the nested folder display is corrupted.
Creating a new catalog and importing the original LR4 one into it loses all the settings from the original (publish settings etc.)
where are the files that contain the publish settings so I can copy them?
I don't want to uninstall LR4 and restart the whole upgrade process...