Im trying to make a smart folder that will give list new music i have added to my library. I have it pointed at my music folder with the search terms being "KIND is FOLDERS" and "LAST MODIFIED DATE is WITHIN LAST 7 DAYS" but nothing is showing up. But if i go to the folder manually and choose "keep arranged by date modified" and get the info of the newest folder it says it was modified the 21'st (5 days ago). No matter how long ago i set the date i get no results. Any ideas?

I have that.
Here is the search criteria of the Smart Folder:

Search: Searching "iTunes Music" (Contents)
Items matching text: folder
Kind is Any
Last opened date is within last 1 days

I have not tried to limit folders within folders which means that if I add "You've Got a Friend" then the Carole King, Tapestry, and iTunes folders will all appear in the results window since the song is embedded within all those folders.
The iTunes folder will only appear once. If all the new songs were in the Tapestry folder, then it will appear only once as well.

There is an 'Other' criteria button at the bottom of the list which appears when you click the + button which will open a huge assortment of possible search criteria. Take a look just for fun.

Good luck!