In some SharePoint 2007 default mastarpages, e.g. BlueBand or BlackBand, you'll find that breadcrumb is not showing folders and subfolders inside lists and document libraries, just showing the current site.
That can be solved with SharePoint Designer performing a simple modification in the master page. You only need to follow the next steps:
- Open SharePoint Designer and connect to your SharePoint 2007 root site.
- Navigate to _catalogs/masterpages.
- Open the master page that you want to modify and perform the checkout .
- In source view, look for SiteMapPath element and notice that it'll have the property SiteMapProvider="CurrentNavSiteMapProviderNoEncode"
- Modify that property and set it to SiteMapProvider="SPContentMapProvider"
- Save the master page, perform the checkin and publish it.
Hope it helps!