diff --git a/OpenSim/Services/InventoryService/XInventoryService.cs b/OpenSim/Services/InventoryService/XInventoryService.cs
index 15156d0537..eed88bd391 100644
--- a/OpenSim/Services/InventoryService/XInventoryService.cs
+++ b/OpenSim/Services/InventoryService/XInventoryService.cs
@@ -307,14 +307,20 @@ namespace OpenSim.Services.InventoryService
             if (check != null)
                 return false;
 
-            if (folder.Type == (short)AssetType.Folder || folder.Type == (short)AssetType.Unknown ||
-                GetFolderForType(folder.Owner, (AssetType)(folder.Type)) == null)
+            if (folder.Type == (short)AssetType.Folder
+                || folder.Type == (short)AssetType.Unknown
+                || folder.Type == (short)AssetType.OutfitFolder
+                || GetFolderForType(folder.Owner, (AssetType)(folder.Type)) == null)
             {
                 XInventoryFolder xFolder = ConvertFromOpenSim(folder);
                 return m_Database.StoreFolder(xFolder);
             }
             else
-                m_log.DebugFormat("[XINVENTORY]: Folder {0} of type {1} already exists", folder.Name, folder.Type);
+            {
+                m_log.WarnFormat(
+                    "[XINVENTORY]: Folder of type {0} already exists when tried to add {1} to {2} for {3}",
+                    folder.Type, folder.Name, folder.ParentID, folder.Owner);
+            }
 
             return false;
         }
diff --git a/bin/OpenSimDefaults.ini b/bin/OpenSimDefaults.ini
index cb9ef224fb..7962ef8930 100644
--- a/bin/OpenSimDefaults.ini
+++ b/bin/OpenSimDefaults.ini
@@ -601,13 +601,12 @@
     Cap_ViewerStartAuction = ""
     Cap_ViewerStats = ""
 
-    ; The various fetch inventory caps are supported by OpenSim, but may
-    ; lead to poor sim performance if served by the simulators,
-    ; so they are currently disabled by default.
+    ; Capabilities for fetching inventory over HTTP rather than UDP
     ; FetchInventoryDescendents2 and FetchInventory2 are the ones used in the latest Linden Lab viewers (from some point in the v2 series and above)
+    ; It appears that Linden Lab viewer 3.3.1 onwards will not work properly if FetchInventoryDescendents2 and FetchInventory2 are not enabled
     Cap_WebFetchInventoryDescendents = ""
-    Cap_FetchInventoryDescendents2 = ""
-    Cap_FetchInventory2 = ""
+    Cap_FetchInventoryDescendents2 = "localhost"
+    Cap_FetchInventory2 = "localhost"
     
 
 [Chat]