Applying template to imported topics creates book folder

Applying the template creates a book folder for each topic (not visible in the Project view, but is visible in Windows Explorer) and moves the htm file into the folder. No other files are in the folder.

I am generating webhelp htm files, and providing the individual htm files to the developer, and the files must be in a specific folder (the one in which all of these book folders are created). Manually moving the files back to the correct folder is not doable - I generate frequently.

This does not seem to happen on all files, but on most. Any idea what is causing this, and how I can make it stop?

Thanks!