Hello,
I assume you are referring to the Edit Online action using the SharePoint protocol - yes, this is correct. The SharePoint protocols requires a scoped collaboration space known as a "document workspace". A site can be mapped to such a concept, but a regular folder in the repository view cannot. In one of our customer installations we have adapted the module to also support regular folders - unfortunately, the context of the project do not allow us to contribute that back into the platform. Maybe I'll one-day get the time to do something similar from scratch…
Regards
Axel
