The folder component has the following settings:
Description - this is optional. If entered then it will display at the top of the folder. If the folder appears in the navigation bar the description will also appear if users move there mouse over the link.
Default sort order - this will affect the order in which items will display within the folder, or in the navigation bar if Navigation Mode is turned on. If you want to manually assign the sort order then set this to Numeric and set the Sort Order for each component that you add to the folder
Navigation mode - if not selected then each of the components will display down the page in the folder in the order defined by the folders default sort order. If select the links to each component will appear in a navigation bar at the top of the page. When selected the folder will automatically go to the item with the highest sort order.