I just configured Gmail IMAP access on Thunderbird 2. Found that it creates a folder for each label. Nice!
But for those messages that had been tagged with multiple labels, it duplicated the message in each of the folders corresponding to the labels. Is that cool or weird or a bug? I haven’t played around with it to see what happens if I delete the mail from one folder. Ideally it should be deleted from all the folders. Will check it out tomorrow (its just too late in the night and have a busy day tomorrow!).