[eluser]TheFuzzy0ne[/eluser]
Oh yes, of course!
CodeIgniter first checks to see if the first segment is a controller. If it's not, only then does it go looking for a subdirectory. I wouldn't say it's a bug as it is desirable behaviour, but I'm not sure if it should be documented, as it's unlikely many people would fall into the same trap.
Glad to be of service. Whenever something goes wrong for me, I usually find starting from scratch is a good thing.