Yes, with QAP v8, a Folder favorites can be turned into a Live Folder!
To enable a Live Folder favorite, add or edit a Folder favorite and go to the Live Folders Options tab. In this tab you click the checkbox Live Folder to transform this favorite into a submenu that reflects the current content of the folder. By default, a Live Folder menu only includes the subfolders and is refreshed as folders are added or removed from the folder (see below when Live Folder's content is refreshed).
To include one or more levels of subfolders under the Live Folder, increase the Number of subfolders levels. Keep it low for large folders or you could reach the maximum number of items allowed in Live Folders (see below).
To include the documents in a Live Folder, click the checkbox Include documents. By default, all documents are included. You can select which files are includes or excluded using the Include or Exclude radio buttons and the text box below to list file extensions to include or exclude (separated by spaces).
After you saved the Live Folder, the favorite appears in the Settings window enclosed by exclamation marks. In the QAP menu, a Live Folder menu starts with a special menu entry to open the Live Folder itself. Below, the folders, documents and/or subfolders are listed, sorted alphabetically.
If a Live Folder menu has many entries, you can split its content in columns. Enter the number of items to display per column. Keep the value 0 if you want to display the menu in only one column.
Live Folder menus are refreshed when QAP is launched and each time the menu is saved in Settings. To refresh Live Folder menus on-demand, add to your menu the QAP Feature Refresh Live Folders .
QAP adds items to Live Folders up to a maximum of 500 items (for all Live Folders in the QAP menu). If this number is exceeded, QAP displays an alert message. If you want to increase this limit, add the value NbLiveFolderItemsMax= (and the new limit) under the [Global] section of QuickAccessPopup.ini file. See How can I edit the file QuickAccessPopup.ini?
Be cautious because adding many items to a menu slows down menu refresh. And, more implantant, adding too many items (the threshold depends on your system capacity) can produce unexpected results, including hanging QAP.
In addition to editing a Live Folder favorite in the Settings window, you can also do it using the Alternative menu Edit a Favorite (Shift+Middle Mouse Button or Shift+Win+W) or by clicking any item in a Live Folder menu with Shift+Ctrl menu modifiers pressed.