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When I'm looking at different types of resources one after another, I always find it tedious to use the navigation bar on the left to jump around in the file hierarchy. For instance, I open the item branch, then I select LEAT04.itm. The navigation bar is now a huge list of scrollable items, and I'm in the middle of it. Now I want to go to a different category, such as spells. In order to do that, I have to manually close the item branch so I can see the spell category again, or I can leave the item list open but I have to grab and move the scroll bar to get to the spells. I can't see the high-level categories when I'm viewing a file in the middle of a large file list.
Solution: Separate the display of the categories from the file list. Allow the user to see and select the categories at all times, regardless of which category is selected and which file is viewed. I'd imagine there could be two columns on the left instead of the single panel we currently have. Basically, cascading over two columns instead of branching within one column.