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Or you could just use Overflow. Works like a charm, and you don't have multiple folders on your dock. Or, you could use dragthing. I use overflow on the dock, though I usually just launch programs from the keyboard with launchbar.
Here's Overflow:
overflow.jpg
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iMac 21.5 inch, Macbook 13 inch, 32GB iPhone 4, 8GB 1st gen iPod Touch, 64GB iPad WiFi, AppleTV, iPod Shuffle
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