Now, I am analyzing some device with using the encase 7. While this work, I set the [condition] to [is Deleted -> True]. After end of run, some files was showing up on encase windows, and each item path was set to {Case Name}{Evidence}{Volume Label}\Recovered Folders{file names}.
Obviously, I know this work differ from "encase processing".
The information of each result doesn't have the exact file path, so what is the exact meaning of the RECOVERED FOLDERS?
In EnCase, "Recovered Folders" is a virtual folder created to hold references to deleted files/folders located when you processed the source. This virtual folder is usually located at the root of the volume, which is what you are seeing in your case.
In other words, what you're seeing in there are deleted files/folders that EnCase found during processing.