Big Problem with Bookmarking

When I bookmark I first get this:

http://img390.imageshack.us/img390/9462/picture2ab2.png

Then I click the dropdown and get this:

http://img390.imageshack.us/img390/796/picture1sd7.png

The problem is that I USED to get (after the dropdown), a list of closed folders.

For some reason, all of the sudden, I'm getting opened folders, which makes it excruciating to navigate to the correct place to store the bookmark. Any ideas appreciate. thanks.