Andreas Strothmann has an excellent post about using metadata on folders in SharePoint 2007, in combination with content types.
I know there are many good reasons not to use folders and stick to metadata and views, but large libraries might require the use of folders for performance or manageability reasons. It is always recommended to use metadata on your documents in the first place, but using this tip you can also apply this metadata on a folder.
Check it out: http://www.mindbusiness.de/blog/2007/05/02/sharepoint-folders-and-metadata/
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