I've seen this occasionally in earlier versions, and it always went away, but not so in v3.13. If I click on Hide Read Feeds, then All News also gets hidden. To see new articles in their folders, I need to unhide read feeds, but with over 100 feeds, this is really inconvenient to then have to go look for the new articles in the folder structure.
This just started happening after weeks of being OK. I've run fixdatabase, exported/imported OPML, reinstalled FeedReader, but nothing has helped. Has anybody else seen this?
Feedreader 3.13, Windows XP SP3, IE 6.0.2900.5512.xpsp080413-2111
Solution for the bug
After adding a new feed, what you wrote was same for me... You will try this solution. It absolutely works, at least for me...
Firstly unhide read feeds. Then just click and hold the "all news" section with your mouse left button, and move this section to the bottom of your feeds or feed folders. After that exit and run the Feedreader... You will see everything is allright...