I’m trying to create a table or data view that displays data from an external/legacy database.  I need to be able to

• Create folders so that we can organize the data.  I want to create the folders inside of SharePoint and have SharePoint manage the folders.  I want to do this without having to create folders in the legacy database.
• use SharePoint’s extensive search capabilities on the data

So far I’ve created a BDC XML file to inform SharePoint about the database and data fields I want displayed.  After importing the XML into SharePoint I created a BDC list web part and choose the data I want displayed.  The issue I am having is creating folders in the Business Data List web part.  Is this the right path to take?  Is it even possible to create folders in the BDC data list Web Part?  What alternatives do I have? 

Is there a way to treat objects that are in a legacy database as "documents" in SharePoint, through subclassing or some other mechanism, so that SharePoint can do everything with the objects that it can do with documents?  In other words, if I have a document/database record in an external database, I want SharePoint to treat that document/database record as say a document in the Document Library.  I want SharePoint to manage the versions, check in and out, permissions, etc.