System and method utilizing virtual folders

A system and method for virtual folder sharing, including utilization of static and dynamic lists. Static and dynamic lists may be created as types of virtual folders. Virtual folders expose regular files and folders to users in different views based on their metadata instead of the actual physical underlying file system structure on the disk. A static list consists of a folder of items that are in a specific order, while a dynamic list gathers a set of items based on a scope and a set of criteria. When a list is shared, the actual list is left in place on the sharer's machine or server, while permission is granted to the sharee to remotely access the list and the referenced items. If the list is changed by adding or removing items, these items are also automatically re-permissioned to allow or disallow the sharee to have access to the items.