hmm, i am not sure, i understand: when no index_page is defined in the folder object (default), then .../xowiki/ shows a table of pages (somewhat similar to the admin page). when the variable is set, and the page exists, it shows the defined page. This happens in xowiki/www/index.tcl If you still get the table with the pages, then maybe there is a misspelling of the page name.
I am still confused about what you mean by "index shows the folder object as well as content."