It's unclear whether we should allow folder exceptions to the File Monitor. See the pros and cons discussed at:
http://www.ventismedia.com/mantis/view.php?id=827

-Rusty

bump this one as it seems to show the interface like it would work but doesn't exclude folders.

I have
M:
\Media
\Albums
\Singles
\Incoming
\Video
as my folder structure.

In the rescan, I have Media with the checkbox to be scanned on startup and continuously, and thus Albums, Singles, Video are checked. I have unchecked Incoming. Thus the Media folder is a square (partial selection)

Example here [url]http://img855.imageshack.us/i/clipboard01bj.jpg/[/url]

When I add an album into incoming, it is still scanned into my library.

Thus it doesn't properly obey the setting provided.