WOOTEST  Mea cupla - I wrote "This sounds absolutely absurd - at only one point in the installation process does the Gmail+Growl Utility ever create a folder, and at *no* point is it named Gmail Notifier." but I meant "This sounds absolutely absurd - at only one point in the installation process does the Gmail+Growl Utility ever create a folder, and at *no* point is it named *something else than* Gmail Notifier."  
(Version 1.7)

WOOTEST  Mea culpa - that should have been "at no point is it named something *other than* Gmail Notifier".  
(Version 1.7)

WOOTEST  This has been fixed now - it was a problem on Gmail's side with emitting the data that made Gmail Notifier and several other Gmail tools stay up to date. Install 1.7 and you should be fine.  
(Version 1.7)

WOOTEST  This sounds absolutely absurd - at only one point in the installation process does the Gmail+Growl Utility ever create a folder, and at *no* point is it named Gmail Notifier.

I'm not saying that this couldn't ever possibly have happen and that this issue is made up, but what I am saying is that it sounds completely unreasonable for Gmail+Growl Utility to do something that it's never been programmed to do.

It would be nice if you'd send "Console" logs from the time when this happened - Gmail+Growl Utility posts info to the system log regardless of success or failure just for these kinds of things - and any other potentially helpful info to wootest@gmail.com so that this problem can be tracked down - and if it really is a problem, it desperately does need to be tracked down.  
(Version 1.7)