A system and method utilizing virtual folders. The virtual folders expose regular files and folders to users in different views based on their metadata instead of the actual physical underlying file system structure on the disk. The virtual folders contain collections of items. The system includes a folder processor that obtains queries from a user and a relational database for storing information about the items. The folder processor first obtains a query from a user and passes the query to the relational database. The relational database provides results back to the folder processor, and based on the results from the relational database, the folder processor provides the results to the user as virtual folders. Users are able to work with the virtual folders through direct manipulation (e.g., clicking and dragging, copying, pasting, etc.).