can Hazel scan subfolders?

I am trying to auto unrar newly downloaded files. I tried to setup rules in Hazel however I ran into some problems.

the downloads are folders with rar files with extensions that go .r00, r01, .r02, etc. so I tell Hazel to watch my downloads folder however it doesn't seem that Hazel scans subfolders.

what can I do to fix this?

See the sticky topic near the top (the one with the paperclip).