IMAP prefix and Courier IMAP Server

http://www.macosxhints.com/article.php?story=200803070811397

Looks like I'm exhibiting the same problems as the post above.

Even though Courier-IMAP is suppose to use the "INBOX" IMAP prefix, my folders do not work properly unless I remove the prefix so that it's blank.

The side effect I'm getting from this is that I get this pop-up for every email account on the domain when I open up Mail.app:

http://www.doubletongued.org/inbox-mail-message.jpg

Is there any way to fix the issue so I can use the INBOX prefix (as I'm suppose to) or have that dialog removed?

Thanks 🙂