All my folders were created with NESTED template and all folders are set to "THUMBNAILS" . Here is how my folders are setup:
TOP ---> 2005 ---> January, february, march etc..etc..etc..
Regular users can see pictures inside 2005 but cannot see any subfolders (january, feb, march etc.. ).
I have checked the permission hundreds of times and all subfolders are set to allow "EVERYONE" to view. I can see the folders just fine ( but i'm the administrator )