I use folks all the time at work if I'm talking to a large table, its more polite then saying something like "hows it going guys?" (head chef at a local place)
OP: I grew up in Newnan, GA (southwest of Atlanta). As a child, I actually hated the word "folks" and never used it until I was an adult. For some reason, it used to sound as "country" as "over yonder."
Now, I use it frequently and it no longer sounds strange. As IronWing said: It's a gender-neutral way to address a group of people.
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