The folder is not on the right of the trash, it is on the right of the dock.
In order to keep my dock as clean as possible I only put the programs I use constantly in the main dock area. The applications I open once or twice a day, or less, I organize aliases of into folders, then add these folders to the dock. This keeps the dock clean yet gives quick access to the apps. Adobe apps in one folder, microsoft in another, apple aps in another, utils, etc, it works for me.
I've recently noticed a visual difference on the PowerBook G4 17" that shouldn't be their, and I'm trying to figure out why and get rid of it.
I have now reformatted the drive of the PB and put a clean install of the operating system on it. Next I created a folder and placed aliases of the utilities I wanted access to into this folder, 10 of them for a test. Then I added the folder to the dock on the right hand side, between the trash can and the dock preferences bar. On the PowerBook G4 Laptop running 10.5.7 when you click the folder icon in the dock it pops up and opens with a gradiented background and odd gradient remnants around the box. Doing the same thing on the iMac intel 17" there is no gradient. I've checked all the folder and screen settings on both systems and they seem to be the same.
I don't see any other visual issues on the PB thus I don't think it is a hardware issue. I'm hoping it's a setting, but sense both systems seem to be set the same I'm wondering if it is something more.