In order for the expansion to work properly during upload or site to site transfer the expanded folder must be created during the expanding. After talking to several beta testers I decided that the expand folder would be best kept for downloading only.
Beta testers did not like the fact that the folder was created during expansion and I couldn't agree more.
If this is something that still appeals to you, perhaps an INI only setting can be added to overide this and allow expanding during upload/site to site.
The reason this works so well for downloading is that we can get away with attempting to create the full path if it doesn't already exist during download without any performance penalties. On the remote site this is a nightmare and extremely slow. not to mention upsetting the ftp server admin.
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