I've got this same issue for IMAP UW. And my inbox is called "INBOX".

A different annoyancy for this same imap server is that I get all home directory files in the folder view. I think this might be a bad configuration on the server, but I've seen other email clients capable in finding the mail directory and show only this.

But else from this cranky imap server, my other gmails and exchange accounts work very good. Very happy with email push too!