First off, at the moment, if a folder is empty it is discarded when the tree is refreshed (either by the button or by a stop/restart) - so that explains 1 thru 10 (stupid list got renumbered!)
11: AutoCompletions is where Auspex parks completions it has made for you on-the-fly, as you probably guessed. The 'folder,' inside is simply the *word* 'folder' that you have probably been typing so often it decided it would store it for you as a suggestion.
Well, what can I say? If you didn't have a dumb user how else would the program get broken?

Select a block of text in some program. Let go of the mouse,
I understand the action but it wasn't happening.
Thinking back, since Kedit has been snatched from the jaws of Auspex, I probably assumed that drag-drop wasn't working at all when, in fact, it doesn't work from Kedit (which does support drag-drop). When dropping on the tree didn't work I *could* drop into the replacement-text box. Maybe I tried the tree at a point where things had come looose. I can drag-drop today from FF and WordPerfect but not from Kedit.
Good thing you have so many Kedit users, or you might feel that the time spent on it was wasted!
I'm going to remove all parts of Auspex and start over, waiting until the Auspex AutoCompletions folder has appeared before I create another or attempt any moves at all.
My hope is to acquire some good moves before too long!
Thanks!