Jetty-4.2.4 is now in JBoss cvs and I believe there will be 3.0 and 3.2 release out very shortly.
You should try with this Jetty (either build from cvs or wait for the releases). If you still have a problem, please take it to firstname.lastname@example.org, where I'm sure the subject has come up before...
If you let me know what resolution you finally reach I will include something in the Jetty/JBoss FAQ if necessary.
I decided not to use Slide because of its requirements as content repository. The directory problem I asked about was only a problem with Slide 2.0 beta.
Tomcat's webdav servlet seems to be integrated with Tomcat's DefaultServlet, so I guess it would have to be ported to Jetty to make it usable. If I have some spare time I could look into that.
So, unfortunately it seems that there is no usable WebDAV implementation available for Jetty right now :(
Look in the FAQ I just posted for the Jetty mailing lists and their urls. Search/post jetty-discuss - I am sure we have people using WebDav.
If you have any success, post back here and I will put your answers into the FAQ.
I deployed the davenport (sourceforge) wedav implementation / SMB connector. Installation and applicaiton are working fine, some other issues have appeared though concerning MS webfolders.