Sorry to bring this thread from the dead... I'm having the same problem, and I can confirm what PerterJ has said. However, I contacted dropbox about the issue and hopefully they will do something about it. I have just a question, how did you create the empty file com.apple.fsplaceholder to avoid the recreation of the directory. I've created a file (with textedit) with no extension, but the folder keeps being created. How did you manage this? Thanks, G.