<ul id="menu1" class="tree-menu">
     <li><a href="javascript:void(0)">To jest nazwa 1 folderu</a>
         <ul>
             <li><a href="_folder1/plik1.html">To jest nazwa jakiegoś pliku</a></li>
             <li><a href="_folder1/plik2.html">To jest inny plik</a></li>
             <li><a href="#">To jest[font="Verdana"] jakiś podfolder</a>
                 <ul>
                     <li><a href="_folder1/podfolder/plik3.html">To jest plik w podfolderze</a></li>
                     </ul>
                 </li>
         </ul>
      </li>
     <li><a href="#">Drugi folder</a>
         <ul>
                 <li><a href="_folder2/plik99.html">To jest jakiś plik</a></li>
         </ul>
     </li>
</ul>

<?php
echo '<ul id="menu1" class="tree-menu">'."\n";
$last_level = 0;
$fp = @fopen('test.txt','r');
if ($fp) {
    while (!feof($fp)) {
        $line = fgets($fp, 4096);
        if(trim($line)=='') break;
        $elements  = explode('|',$line);
        $level = substr_count($elements[0],'/');
        $tabs = '';
        for($j=0;$j<=(2*$level);$j++)
            $tabs .= "\t";
        $elements[1]=str_replace("\r\n","",$elements[1]);
        if(strpos($elements[0],'.')){                        //jest plik
            $last_was_folder = FALSE;
            echo $tabs.'<li><a href="'.$elements[0].'">'.$elements[1].'</a></li>'."\n";
        }else{                                                                    //jest katalog
            if($last_level>$level){
                if($last_was_folder)
                    $last_level++;
                for($i=0;$i<($last_level-$level);$i++){
                    $t = '';
                    $t2 = '';
                    for($k=0;$k<(2*$last_level-2*$i);$k++){
                        $t .= "\t";
                        ($k==0) ? $t2 .= '' : $t2 .= "\t";
                    }
                    echo $t.'</ul>'."\n".$t2.'</li>'."\n";
                }
            }else if($last_was_folder){
                for($k=0;$k<(2*$last_level-2*$i);$k++){
                        $t .= "\t";
                        ($k==0) ? $t2 .= '' : $t2 .= "\t";
                    }
                    echo $t.'</ul>'."\n".$t2.'</li>'."\n";
            }
                echo $tabs.'<li><a href="#">'.$elements[1].'</a>'.
                       "\n\t".$tabs.'<ul>'."\n";
          
          $last_was_folder = TRUE;
        }
        $last_level = $level;
    }
    fclose($fp);
    if($last_level==0)
        echo "\t\t".'</ul>'."\n\t".'</li>'."\n";
       for($i=0;$i<($last_level);$i++){
            $t = '';
            $t2 = '';
            for($k=0;$k<(2*$last_level-2*$i);$k++){
                $t .= "\t";
                ($k==0) ? $t2 .= '' : $t2 .= "\t";
            }
            echo $t.'</ul>'."\n".$t2.'</li>'."\n";
        }
}
echo '</ul>';
?>