bdial,
Thx for quick response. Yes, it does. The only place it doesn't show up is in the folders tree on the left side. All the other folders listed when I grep for "inbox" seem to be in the UI. It's really weird. I don't get it.
I also went through the logs from the past week and searched for any activity related to that folder and it appears that the last time something was put in it was yesterday around noon. After that it seems like it disappeared.