Nested Controllers/Models/Views

I've had pretty good luck with this. Here's what I've done:

1. For models that are in subfolders, I make sure that the model is in
a namespace that can be equivocated to a folder by the Inflector. For
example, /app/models/extra/product.rb would look like this:

module Util

  class Product < ActiveRecord::Base


or you could do

class Util::Product < ActiveRecord::Base


For controllers, do the same thing - make sure the fully qualified
name will match the folder heirarchy.

There's one big gotcha, though - your routing will need to specify the
full path to the controller, for example

map.connect '/products/:action/:id', :controller => 'subfolder/

Then everything should work.