You can have Interpret import XML files from various subdirectories of the directory specified in the Configure XML file source and destinations dialog. To do this, click Advanced in the Configure XML file source and destinations dialog. Then select Import XML files from subdirectories.
In the Search for directories named box you can use wild cards such as * and ? to indicate more specifically which subdirectories you want Interpret to import image files from. For example, if you type A*.*, Interpret looks for subdirectories that begin with the letter A (or a).
If you deselect it, Interpret moves files from all subdirectories to the directories you specified in the Configure XML file source and destinations dialog. In this case, you must ensure that all the files in the subdirectories have unique names, because Interpret moves them all to the same directories after importing them and there would otherwise be file naming conflicts.
If you are importing XML files from subdirectories, be aware that a Temp directory is created in each subdirectory.