Ok, so here is how to open up folders:
1) still in admin area and manage members
2) click on members
3) right side of screen, where it says on gallery, members
4) click on show all folders right below that
5) this will show all folders you have created.
6) each folder will have a drop down box, select vote, not allowed, or automatically accept
7) do that for EACH folder, and don't forget to save (bottom left)
8) if you have co-founders or contributors or whatever, you'll have to go to each one and open the folders for them as well, or they won't be able to submit.
9) let me know if you have any questions regarding this.