That is how the target path was set, did it all just like the old OFP way initially, but for some oddball reason it didnt work. It makes no sense to me either why a lowercase a in the modfolders addons folder would throw a wrench in the works. But let's not forget two important factors here. #1 Arma, #2 Vista Home Basic. LoL
And again, the issue started on an out-of-the-atari-box install, no patches. I saw the modfolder method not working properly and just used the stock addon folder. After starting this thread I realised I was now 1.11 compliant so I tried using modfolders again, now it all works fine. mabey it was case sensitivity, mabey it was a stock install v.s. Vista issue? I dunno. Works now. But if someone running Vista and a stock / off-the-shelf install is having trouble with their modfolders working then they'll know that patching to 1.11 might fix their problem.
But sorting out new addons from the stock addons folder isnt too terribly tricky as long as you sort by creation date (Provided you didnt reinstall and replace all your favorite addons the same day. I've been lucky, it installed right the first time and it's been running "fine" ever since aside from the addon quirk)