Can I configure Visual Studio to use real folders instead of filters in C++ projects?

In the Solution Explorer in Visual Studio, just click the toolbar button called 'Show All Files'.

That does exactly what you want.

EDIT(Billy O'Neal): Added image for others so they don't have to hunt...
_{(source: billy-oneal.com)}

As an extra tidbit, there is a bug that a few teams and I that were in a class together ran into where disabling the "show all files" option would crash VS10. As of right now there isn't a definite fix, but it seams to be due certain VS specific files being listed when they should not be, or at least that's what the Microsoft Connect said.

As a workaround, please go to Tools - Options - Projects and Solutions - VC++ Project settings and add .vcxproj and .filters to 'Extentions To Hide' there.

Thanks very much to Aly Hirani on Microsoft Connect for help.