Hi John,
thanks for the reply... I am still a bit confused, however. I did drag folders into my User Materials folder, but when I am actually in SketchUp, and in the paint bucket tool with a list of materials, it does not recognize a folder within a folder. I can only have one single path per folder.
So in my dropdown menu in materials, in Sketchup, I have Permacon, etc. In my actual materials folder on my desktop, there are folders for each range of stone, WITHIN the permacon folder. However, going back into sketchUp, when I click Permacon on the dropdown,it will not show folders. It will only recognize any single .skm files. Therefor, instead of just having a "permacon" folder, with the different folders of specific stones inside, I now have a dropdown menu full of folders in the material tool itself.
I hope this makes sense. I wish I could attach screenshots to show you.