Jay - I love it when the instructions in the Help File don't match what the program has :)
The options I see in my program are: Actions > Folder Options > Rename.../Design.../Move.../Remove Folder
There is no "Upgrade Folder Design" option! If I click on Actions > Folder Options > Design..., it starts the Domino Designer, at which point, I'm kinda lost. I've been poking around, looking at the options, but have yet to find what you have described. I'll keep looking, though, but if you have any other suggestions, I'm all ears!