Correct way of configuring Thunderbird for Gmail's IMAP

After Google unveiled IMAP support to GMail, there has been lot of guides popped up describing how to configure Thunderbird for using it with GMail's IMAP,

Most of these guides are not describing the correct way of configuring Thunderbird to be used with Gmail's IMAP,

They are just suggesting to override folder mappings,
Many of the folders such as Drafts, Sent, are shown only as sub folders under Inbox,

The correct way is

We have to tell the IMAP root folder for Thunderbird to use,

1 -> Start thunderbird

If you are going to create a new account, then after completing the "New account setup" wizard

2 Go to Edit -> "Account Settings"

Select the newly created account and

3 Go to "Server Settings"
-> Check SSL under "Use Secure connection"
-> Click "Advanced" button,

4 In "IMAP server directory" field enter [Gmail]

5 Now go to "Copies and Folders"

6 For now remove Tick for "Place a copy in" under "When sending messages, automatically"

7 Choose "Local Folders" in both of the drop down menus under "Drafts and Templates"

8 Close the "Account Settings" windows

By doing this we are avoiding new extra label creation in our Gmail account.

9 Now click Inbox, you will be asked for account password, enter the password.

Now new folders will be populated under Inbox,
No more sub-folders.

10 Now follow step 5 and tick the "Place a copy in" and select the "Other" radio button then choose the Sent Mail folder from the newly created account.

11 For drafts just choose newly created account name from the drop down "Drafts folder on"