Yep - alerts  do not work  at the folder  level. You'd have to create a
separate document  library instead of a folder...

I have to disagree, setting up an alert  at the folder  level will notify you of
all changes within that folder. I've setup multiple alerts  at the folder level
and I get notified of all changes within that folder. The link in the email will
take me to the file that resides within the folder.

Now why you're not receiving alerts for that folder, I'm not sure.

Yes - but the scope of the alert  is the entire document  library - not
just the folder. In your case if you make a change  outside of the folder
you will still be notified. This can easily be seen by looking at the
actual alert (Site Settings/My alerts  on this site) which is for the
library and not the folder.

I took the question to be asking f an alert could be set  up that was
scoped to just the folder.

I cannot replicate your statement "if you make a change  outside of the folder
you will still be notified". I uploaded a document  in the document library, not
in the folder  and I still do not get a notification.

Under Site Settings/My alerts  on this site, there is a difference if you setup
an alert  for a document library  or if you setup an alert for a folder. They are
not one of the same.

Lets say I have a document library called DOCLIB1 and a folder within this
document library called TEST1.

For a document library, it displays: DOCLIB1
For a folder within this document library, it displays: DOCLIB1:TEST1

These two alerts are not the same.

This is the way I understood alerts: You can setup alerts at the file level, the
folder level  and at the document library level.

This has been very interesting and very valuable. I wonder if the
differing experiences are related to differing products? Perhaps
those who cannot get alerts  to work  at just the folder  level are
Sharepoint SERVICES users (which I am) and those that can successful
set alerts at the folder level  are sharepoint  PORTAL Server users???
I'm not sure, but I would expect Portal server to have higher
functionality than the Services product. ??

I agree they are not the same. But, if you have an alert set  up for all
changes to the document  library you will get alerted no matter where the
document physically resides within the library. You cannot scope an "all
item changes" alert  to just a folder.

If you set an alert on the folder  item itself you are just asking for
changes to that item (so, for example, if someone changes the name of
the folder you will get an alert but not if items within the folder are
added/changed).

If you only have a folder item alert set up then you indeed would not be
able to reproduce my statement below - but if you also had a document
library alert setup you would!

At least that is the way it seems to work  on my system!

I think I see where the confusion is. There is a difference betwen alerts  at the
SPS level  and at the WSS level.

Your email below applies to SPS. You cannot setup alerts for folders at this
level, just for the document  library.

But in your ealier email about site settings/my alerts on this site applies to
WSS. And at the WSS level, you can setup alerts for folders. I've uploaded
multiple files into a folder  and got notifications for each file that was
uploaded.