Thanks for the reply shark.
Unfortunately thats the way I've been making my freesites for a while and get accepted at all major LLs without a problem. I'm by no means a SEO expert but I dont think the folder structure thing is paid much attention to these days, i think most ppl agree your folder structure doesn't make any difference to the SEs, at the end of the day they are all dupe doorways no matter what folder you put them in.
I actually have a noindex tag in my duplicate doorways and rotate which doorway I let get indexed with each submit so dupe doorways aren't really an issue with me anyway.
Let me know if the folder structure is still a problem for you.