Out of the box, one of the differences between Outlook and Google Apps is the different handling of folders and "labels." One feature that is missing in labels, that some of our users depend on, is hierarchical label structure. This functionality is available in the Firefox browser with a simple add-on. If you'd like to use this, Firefox is a safe and easy-to-download browser. (IT staff can download and install this and the label add-on to your campus workstation.)
Sub-labels in Firefox browser with the Better Gmail 2 Firefox extension that adds features to the Gmail interface. (Note that this extension was updated on 18 June 2009 and includes several nice features including "Folders4Gmail" the tools that lists labels in a folder-like hierarchy.)
So, how to get this Firefox extension? First, if you don't have Firefox browser, you can get it at http://en-us.www.mozilla.com/en-US/firefox/personal.html. Then get the Better Gmail 2 add-on, by going to https://addons.mozilla.org/en-US/firefox/ and doing a search for Gmail, scroll down to Better Gmail 2 and click on "Add to Firefox". Once you've added it, you'll need to set the options for Folders4Gmail. In the menu bar in Firefox, click on Tools --> Add-ons and the following window will open:
Click on "Options" in Better Gmail 2. Click on "Sidebar" and check "Folders4Gmail"
Now to get your labels working properly you will need to separate you labels/sublabels with the right leaning slash (located below the ? on your keyboard). Ex. Personal/Family/Healthcare and Personal/Family/Birthdays will place e-mails you need on those 2 sub-folders of family beneath the master folder: Personal. (Note: in the migration, the label inbox precedes all your folders, you can remove that by clicking on edit labels and rename.
(Please note that this is a third party add-on for Gmail. While it works now, it may break if Google upgrades Google Mail.)