I have ran into an issue where a user has wanted to create a site template of a site that contains folders in a 'Shared Documents' web part.
When we create the site template and include the content and then try to use that site template to create a new site it fails miserably. If we were to create another site template while not including the content, it works like a charm.
Why does it fail if I include the content?
I have found the following errors in the logs:
Failed to activate site-scoped features for template 'STS#1' in site "http://site"
Failed to activate web features when provisioning site at url "http://site" with site definition "STS#1".
Failed to apply template "STS#1" to web at URL "http://site"
Failed to apply template "STS#1" to web at URL "http://site", error Adding properties to the folder with url Shared Documents/3.Design failed while activating feature, the folder does not exist. 0x203cb7d0