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This is indeed the case, happens for me also.
But discovered last night (I have version 3.2.6317.0 now) that everything works right when I do the following:
In the main window, second row on top, I type in the Target Name box the object name (M66 for example) and press Enter.
Nothing happens except a Windows sound signal.
Then if I click the Start Capture button, M66 is there and when recording it creates the right folder and saves in the M66 folder.
What happens is that there are two pieces of code that try to record the new target name when you have been typing in that box. One of them does it correctly in the version you have and one does it incorrectly. Depending on how you move away from the target name box you get either one piece of code firing or the other – if you get one that works correctly by pressing the enter or tab keys then all should be fine. Otherwise you get the experience of the target name going back to the previous value and the wrong folder being created. I think that I habitually use the <tab> key to move on from that box which is why it took me so long to spot this problem.
