iPhone Developer Chpwn, has updated Infinifolders to version 1.1.1-1, adding support for iOS 4.1. This tweak gives you an infinite number apps and adds vertical scrolling to browse through your folders.
Infinifolders lets you add as many icons as you want to each folder, breaking the 12-app limit, and access them through a flick up and down.
Many settings provide full customization (no respring required!) – and resprings don’t mess up your icons.
Infinifolders is available in the Cydia Store via BigBoss repository for $1.99