If you can describe what a BD folder is, I'm sure we can show you how to create one, Bob.
I would guess a Blu-ray Disc folder.
As I do not have PE7, and do not work with HD footage, hence no BD, I could not answer the OP's question.
What I call a 'BD Folder' is the data that is on a BD (disc).
It contains a "BDMV" and "Certificate" folder.
In the "BDMV" folder is the: AUXDATA, BACKUP, BDJO, CLIPINF, JAR, META, PLAYLIST, and STREAM folders with
files labeled index.bdmv and MovieObject.bdmv.
In the "CERTIFICATE" folder is the: id.bdmv (I'm not sure what this is) and a BACKUP folder.
The STREAM folder holds the files for the video clip(s) and its menu(s).
It is similar in structure to a "DVD FOLDER", it just is for Blu-ray project files, rather than digital (DVD) project files.
Then you can burn this "BD FOLDER" to a BD disc using a program like Nero or ImgBurn.
I know it can be done, as I have do it daily in PowerDirector-7 for all my Blu-ray projects.
I just bought PE7 and noticed it could produce DVD FOLDERS, but not BD FOLDERS. (at least that I could figure out)
ie: a BD FOLDER is like a DVD FOLDER except they're for Blu-ray (HD) files as opposed to DVD (digital) files.....
Thanks for your feedback...
You can not burn BluRay files to a folder on your hard drive in the current version of Premiere Elements, Bob. Sorry.
Thank You, Sir.