Hi Phil,
 
Try these settings to make your folder navigation a little better with OE Classic.
1. Press, Alt + T, for Tools and press the letter, O, for options then on the General tab, uncheck always Show the Send & Receive window, tab to, Apply,
press the spacebar, and tab to get to the list of options.  When you get to, General down arrow to, Layout.
 
2. On the layout tab, tab to, Position Email combobox and put this on Hidden.  Tab 1 time to, Show header and you want this checked.  Tab 1 time to, Position
News combobox and again choose, Hidden.  Tab 1 time to, Show header and uncheck this checkbox.  Tab to, Okay, and press enter to save / close.
Note: On the layout Tab, I don't have, Contacts checked, but I do have Folder Bar, Folder List, Tool Bar and Status Bar checked.
 
I'll tell y'all this folder list reading sucks, but you can only try to make it better and experimentation is a must.
 

Take care and stay safe.  Mike.  Sent from my iBarstool.  Go dodgers & Rams!
Main's Law:  For every action there is an equal and opposite government program.