I was wondering that if it's a Folder Browser thing, that the old style XP folder browser is pretty bad imho.
The newer type from window from vista and above could easily be used, that at least has an explorer type dialog, and a way to type in the path, I think?
Here's the comparison again for the folder dialogs.
Windows XP Style.
Window Vista, Win 7 Style
If cockos is using ifiledialog, then they could set a flag in the options "FOS_PICKFOLDERS"
Here's a thread I found, and I did manage to do a test with code in an extension plugin just to see if the window would open, and it did.