RLV doesn't actively limit the number of subfolder levels (as far as I know), but due to SL restrictions, the path can only be so long (not sure about the values, but in most cases it wouldn't actually have an impact).
When something isn't put on, check
- if RLV is turned on;
- if you're wearing the HUD and it is responsive (check if it helps if you reset it in the menu > Setup > Reset HUD);
- if both inventory folder name and Wardrobe item title are spelled the same;
- that you're not using any "forbidden" characters in the folder name (commas, slashes);
- that the folder is findable by RLV, i.e., doesn't start with a dot.
A good place to start for more in-depth troubleshooting is to activate RLV's debug output (in the viewer menu: RLVa > Debug > Show Debug Messages). Try to put the item on again and check the output for any error messages, which should give you a hint what's wrong.