Hi all,
I just upgraded to 4.2 and now I can't publish my blog. I even did a complete reinstall by renaming the existing MT directories and copying over the new MT. I'm hoping someone can help me please.
The error I'm getting when trying to publish is:
close An error occurred publishing category '1': Publish error in template 'Category Entry Listing': Error in tag: error in module Sidebar: Publish error in template 'Sidebar': Error in tag: Error in tag: Error in tag: Error in tag: error in widget Page Listing: Publish error in template 'Page Listing': Error in tag: Error in tag: You have an error in your 'folder' attribute: NOT (images OR /images OR About OR Contact)
Thanks
Reported on Movable Type 4.2

I had the same problem but in only one of my five blogs.
By going to Design|Templates|Refresh Blog Templates|Apply a new template set|Community Blog in the troublesome blog, I was able to publish my entries and I could put up a functioning blog. Choosing "Classic Blog" wouldn't publish individual entries although it would publish the index page.
This is a temporary and unsatisfactory fix for me. I still have no access to my templates.