CFEclipse editor driving me insane

For CFEclipse, you can control what gets folded/collapsed by default. Open your flavor of Eclipse. I use 3.3.2 and, just as of yesterday, started migrating to 3.4, but believe the same steps apply for 3.2+. Apologies if you already know this...
1. Open Eclipse
2. Open Preferences (this varies from 3.2 to 3.3+ and from OS to OS)
3. Select/Expand CFEclipse in the list of options on the left of the preferences dialog
4. Select/Expan Editor under CFEclipse
5. Select Code Folding
6. Look at the column for initial collapse and select/deselect items you want/don't want initially folded.

I've also experienced the code folding problem where multiple functions are wrapped into one element. In these cases, I typically close/reopen the page to resolve, same as 12Robots. This happens to me usually when I've copied a function and pasted it in the same CFC (and then change the name, code, etc.) or, as 12Robots notes, when adding a function to the CFC.

You can also mess with the context-menu items to see if they help when this happens (right-click and then try Refresh Syntax Highlighting or Expand All/Collapse All).

Every time I have experienced this problem, I was able to resolve it by closing the file and opening it again. I find this usually happens when i add a function to a cfc.

I had a similar problem. When the function gets too complicated, the parser gets confused and matches up tags incorrectly.

I had to switch over to Dreamweaver for that application. You might try refactoring the function to be less complicated.