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Originally Posted by stanmarsh01
Yep, the mail that comes into the subfolders is unread. i.e. if you expand the inbox to view the subfolders, it will say "Folder2 (3)" when you have 3 new messages. So it behaves identically to the Inbox, just that if mail arrives in a subfolder of Inbox, there is no alert.
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As far as I know there is not a workaround for this as it only monitors the Inbox and not subfolders. I've been waiting for a solution via phoneAlarm to be able to monitor a few of my subfolders that I have rules set up on thru Exchange but no dice so far.