However I can't really understand what is going on in the source here, since it's a "homedir" value from maildir_info_imap_find() which is being passed to a "maildir" argument of maildirwatch(). I'd have to start putting printf's in just to work out what is supposed to be happening.
It's just a different way of looking things for different libraries.
For maildir_info_imap_find(), 'homedir' is the pathname to the main maildir, while 'maildir' specifies the individual folder.
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