Office 2003 datasheet view behavior

So for those of you out there still dealing with Office 2003 here in an annoyance that I found:

If you have a list with folders, and you go into one of the folders and try to create some items in DataSheet view, as soon as you create a row it will seem to disappear! What happens is that it actually gets created at the root level of the list! If you have Office 2007 the item gets successfully created inside the folder. The only way to get items into folders with 03 is to use the NewItem form but this can be a huge pain if you are trying to create 200 items at once.

Apparently this isn't something that is going to get fixed, it has to do with the fact that Office 2003 was designed to work with WSS 2.0 which did not allow you to create folders in Lists. Oh well, now at least you have been warned.