[Dovecot] Telnet access creates new maildir folders

[Seasoul]

Hi,
I am running Dovecot Version 1.0.15on a Debian server, with postfix and
postfixadmin.
My mailbox base is /var/mail/vmail

When I send an email to a user1 at domain.com for the first time, the user
"mail" creates a set of dovecot folders under /var/mail/vmail/
user1 at domain.com/ and my new emails are found in /var/mail/vmail/
user1 at domain.com/new
When I test my server using telnet (telnet domain.com 110), I can log in
fine as a user1, but when I type "LIST", it tells me there are no emails.
And I realize a new set of dovecot folders were created under
/var/mail/vmail/user1/ ! The folders are created by the user "user1".
Obviously the folder "new" under that is empty, since my emails received are
in /var/mail/vmail/user1 at domain.com/new and not /var/mail/vmail/user1/new .
Therefore, connecting with an email client via POP also shows an empty
inbox.

I am lost as to what to do to fix this, and how to let the server know that
pop access should be looking into /var/mail/vmail/user1 at domain.com/ instead
of /var/mail/vmail/user1/ .

Hopefully someone on this list will be able to save me from my misery :)

Cheers
Sea