[WBSCLariat]

F150BUM - I had this problem when I recorded the cd's with my Dell's newer dual layer DVD/CD recordable drive. The CD's were unreadable in the Ford Visteon player with the same error you're seeing. I plugged in an external older Sony drive that could not record dual layer, but just single layer DVD's/CD's and my F-150 had no problem reading the disks created on this drive.

I believe it does support folders. From F150 2006 owner's manual :

Track/Folder Mode: Available only on MP3 discs in CD mode. In Track
Mode, pressing SEEK will scroll through all tracks on the disc.
In Folder mode, pressing SEEK will scroll only through tracks
within the selected folder.