I just changed the way I was going to answer...hope it doesn't get sent out before I can edit this. When using the inline setting you can simulate the folder name by making the folder description the same as the folder name and then checking the box to show description.
Note the help for Display Folder Contents: "If you choose to display the folder contents on a course page, there will be no link to a separate page and the title will not be displayed. The description will be displayed only if "Display description on course page" is checked.
Also note that participants view actions can not be logged in this case."
Hope this helps,