[Dovecot] problem with folder creation

[John Watson]

I am running dovecot 1.2.12 on Free BSD 8.1. We also have postfix and a version of squirrelmail for the UI.  We are using MySql database to store the email account info. I wrote a script to insert about 100K users into mysql. Those accounts seem to work well
and I'm able to see things like 'Drafts', 'Trash' and 'Sent'. Now I am working on code to create new accounts - one at a time. The accounts get created and I can send and receive email from them but when I go go Drafts, Sent or Trash I get an error that says:

ERROR: Could not complete request.
Query: SELECT "INBOX.Drafts"
Reason Given: Mailbox doesn't exist: INBOX.Drafts

When I go out and look at the mailbox folders for these users I only see "cur", "new", and "tmp" whereas on other accounts that work well I also see things like INBOX.Drafts etc.
I have examined the sql that is inserting the accounts in bulk versus the one by one case and can not see any differences (other than a new mailbox name/password etc).
Everything that I'm reading online indicates that Dovecot should just create these extra folders on the server and there is really nothing for either an admin or a user to do.
Does anyone have any more information on this?

 Thanks in Advance
John Watson