Note that php4 (4.4.0) will encode IMAP folders in a way that no other program will be able to decode them back.
$ php4 <<EOF
> <?php
> echo "ENCODED: " . imap_utf7_encode("") . "\\n";
> ?>
> EOF
ENCODED: &w5w-
Now try to decode the result string ("&w5w-") using e.g. javamail or python's imaplib, or if you don't like these languages - create an IMAP folder using PHP and try to display it in an IMAP client (mutt, thunderbird, outlook, whatever...)