G'day
Code folding is cool. I can see this being a very useful feature.
While not a busting issue for me, I noticed that code folding in 'C' IS working for the precompiler #if statements, even when the '#' is not at the start of the line. However, while not wanting to create any argument about standards, the ... other [adjective deleted] way of doing it #....[some space]...if does NOT seem to be working.
It is early days, and so I can see how this one got in...
regards DM
White space in pre-compiler statements
You have definitely found a bug with the folding 
A new version of the xFolder.dll that should fix this bug can be found here: http://www.zeusedit.com/z300/xfolder.zip
To use this zip file, make sure Zeus is not running, go to the Zeus installation directory, make a backup copy of the current xFolder.dll file and replace the dll with the one contained in this zip file.
Cheers Jussi

A new version of the xFolder.dll that should fix this bug can be found here: http://www.zeusedit.com/z300/xfolder.zip
To use this zip file, make sure Zeus is not running, go to the Zeus installation directory, make a backup copy of the current xFolder.dll file and replace the dll with the one contained in this zip file.
Cheers Jussi