I have one other bit of information - an anomoly and a thought about the cause of this.
1. I have a paid dropbox account and the person I share with recently upgraded to a Professional account - this happened right around the time of the weirdness.
2. I rename a shared folder that is placed in my account which then causes the original folder put in by the person with the Professional account to show it is 'deleted.' The renamed folder is still showing.
Is this caused when 2 people have different versions of Dropbox - i.e. profession vs. regular?
HERE IS THE HIERARCHY of the folders:
FOLDER AT THE ROOT WHICH WE SHARE
I fill will NEF FILES
PERSON with PROF. VERSION INSERTS A FOLDER OF MERGED FILES NAMING "X"
I RENAME FOLDER "X" to be X xyz and download to my computer
THE WEIRD FOLDER APPEARS ON MY SYSTEM ALONG WITH THE DOWNLOADED FOLDER.