Quote - Ooops. I was in Photoshop :)

Now how do I get the action to run on a folder and sub-folder as a batch proccess.

momdot;
if you made the action in PS  just launch PS and go to FILE >> AUTOMATE >> BATCH
select your "action" from the drop down menu
source FOLDER 
choose: (locate the folder of images)
check the box for INCLUDE ALL SUBFOLDERS
destination FOLDER
choose: (select a folder for the converted files)

hit the okay button (to run the batch)

you may want to  check the boxes for OVERRIDE or the SUPPRESS options  depending on how you set up your action...

hope this helps
retrocity