Is it okay to close my laptop during Folding@Home? Does that ruin the process?
Does it still work in the background when the computer is idle but closed?
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Does it still work in the background when the computer is idle but closed?
The first one.
In your power settings there should be an option "choose what closing the lid does" or something like that, and you can change it to do what you'd like.
Not sure what os you have but on windows you can just right-click your battery icon in the task bar and choose power options from there. Linux has something similar but I don't recall where exactly.
I use Windows.