It returns the value (0 or 1) of the isfolder field of the Resource.
In Revo, isfolder is not set automatically when a resource has children like it was in Evo (though there's plugin I wrote to do that around here somewhere). Your output modifier should work if you manually check the container checkbox on all resources with children.
As an alternative, you could create a hasChildren output modifier (if there isn't one already)
Just create a snippet called hasChildren with this code:
return $modx->resource->hasChildren();
FYI: hasChildren() and this output modifier actually return the number of children, in case you ever need that. If your output modifier in the tag doesn't work, try changing the snippet code to this:
return $modx->resource->hasChildren() != 0;
[ed. note: BobRay last edited this post 13 years, 5 months ago.]