[blackbird_1.0]

I've seen it in the contextual menus, and I'd heard of it before, would anynoe mind clarifying what folder actions are, and how they can help productivity?

[Horsepoo!!!]

You can attach scripts that will be performed on files dropped into the the folder.

The possibilities are infinite. Imagination is all you need to figure out what it can do to your productivity.

[Krusty]

What Horsepoo said is correct .. but folder actions can be used even more extensively than just when a file is dropped in:

Here is a great place to get a brief overview.