Apparently, I am now able to see the files that were in the 'corrupted folder'. I think I didn't run the recovery the first time very well. I just did the fast search and moreover, the specific file type I was looking for wasn't ticked. I got another recovery software which performed a full scan and I was able to see some of the files. I then later tried the Recover My Files software choosing the complete format option and specifying the file type (.avi). I interrupted the scan but I could see most of my movies.
So basically I will be able to recover the files. Initially I was expecting to recover the folder itself but it seems as if I will just have to search and recover the individual files.
I am assuming that after the recovery process, when I delete the 'corrupted folder' which now appears to be only 32Kb, it would actually free the tens of gigs of space I am expecting.
Thanks for all the support. I googled this stuff before posting my problem here and there were a couple of guys with a similar problem but got no response. I hope this helps some other guys in future