Ha, Ha :-/
I remember what RTFM was...but again, that is not what I am talking about. Yes the brain probe would be a great option.
The FM says...
"Set up watched folders
In the Auto Import Settings dialog box, click the Choose button next to Watched Folder.
Navigate to the location you want and do any of the following:
To create a watched folder, click Make New Folder and then overwrite New Folder to give the folder a name (Windows), or click New Folder (Mac OS), give the folder a name, and click Create.
To select an existing watched folder, select the folder.
Note: You cannot choose an existing folder that contains photos as a watched folder."
I DO try and read a bit before I post!
So with that added note, it is just for importing to a new folder. Its not applicable to someone editing within a folder full of images. Lets say you did make a new folder for the new edits to be saved under, and that was the hot folder. As soon as 1 file is added to that folder what happens? I would also suggest that a Right Click on a folder should show options for such an action.