getting mixed up with folders

Hi,

I've got a directory

/scams/examples

which contains atm 5 subdirectories. each of the these subdirectories contains some images.
i'm trying to make an <ul> in the form
<ul>
<li>foldername</li>
          <ul>
           <li>image url</lil>
           <li>etc</li>
          </ul>
<li> etc </li>
</ul>

i wrote some php which vaguely worked but only looped once. have been moving bits around but now it works even less. i think i've gotten a bit mixed up with so many sub loops. can someone have a look please.

<ul>
<?
$path = "scams/examples";
$dir_handle = @opendir($path) or die("Unable to open $path");
chdir($path);
while (false !== ($file = readdir($dir_handle))) {
       //check for scam folder names
       if (is_dir($file) && $file != "." && $file != "..") {
           //echo ("hello?<br>");
           echo ("<li>$file</li>\n");
           $path2 = ("$file");
           $dir_handle2 = @opendir($path2) or die("Unable to open $path2");
           chdir($path2);
           while (false !== ($file2 = readdir($dir_handle2))) {
                  echo ("  <ul>\n");
                  //check for scam images in folder $file
                  if (!is_dir($file2) && $file2 != "." && $file2 != "..") {
                          $query="SELECT id,subject FROM examples WHERE filename='$file2'";
                            $result=@mysql_query($query);
                          if ($result){
                                                   while ($row = mysql_fetch_array($result,MYSQL_NUM)) {
                                        //echo ("$file2");
                                        $page="scams/phishing.php?id=$row[0]";
                                        echo ("&nbsp;&nbsp;<li><a href=\"$root$page\">$row[1]</a></li>\n");
                                        mysql_free_result($result);
                                     }
                           }
                    }
           closedir($dir_handle2);
           echo ("</ul>\n");
       }

}
       chdir($path);


}
closedir($dir_handle);

?>

</ul>


the source comes out as

<ul>
<li>HSBC</li>
  <ul>
</ul>

</ul>

at one point i had it making the creating the a href for the hsbc image but now it doesnt. (there's was only one image in the hsbc folder.

thanks for any assistance.