Only Copies Items in the Root Directory

I am on Windows 7 (64 bit) and I have Toucan 3.0.3 Pre-Release 5. I have Toucan installed on my flash drive. I am trying to set up a Sync that basically uses the Mirror option to copy the entirety of my flash drive to an arbitrary location on my hard drive (gee, it happens to be inside my local Dropbox folder).

I set up a job named "Copy to My Dropbox" and I created the source to be @drive@. When I put that as the Source, it loaded a listing of all the files on my flash drive just fine in the LEFT panel.

I then chose the location of My Dropbox as my destination. For me it is D:\My Dropbox\Flash Drive Files. I chose the Full Comparison method of File Checks and then I hit Preview. Everything looks great in the preview except none of the files or directories inside the directories on my flash drive's root get copied. Take this as an example:

Let's say this is the complete listing of files on my flash drive.
E:\School\
E:\School\paper.doc
E:\Work\
E:\Work\Programming\
E:\Work\Programming\foo.py
E:\Work\Freelance.xls
E:\ID.txt

This is what would be copied (and what is shown in the RIGHT panel of the Sync tab) using my current configuration of my Sync job.
E:\School\
E:\Work\
E:\ID.txt

A side note: the backup feature works just fine. I set the source as @drive@ as before and choose another location for the .zip file. When I do the backup, the .zip contains all files on the flash drive. Not just files and folders that are in the root directory.

Am I missing something?