I am not sure to fully understand the issue you stumbled upon. Is a CSS class missing in the template ? Is it something you can report in the issue tracker there http://issues.ez.no, if you think it is a defect ?
Cheers !
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Nicolas Pastorino
Director Community - eZ
Member of the Community Project Board
Is not a CSS problem, is a template problem. Given this structure
Folder
-> Subfolder1
-> Subfolder2
This folder with display subitems selected will not show subfolder items if you choose to show them horizontally, it will work if you choose to do it vertically.