1) Hold down the menu button for 3 seconds.
2) The screen will now display the the Folder Finder menu.
3) Select the location you want to place the new folder using
the jog dial. If you want to place the new folder in a existing
folder press the >> button.
4) Now that the locatin is selected press the menu button.
5) Use the jog dial to scroll down to the the new folder option
and press in the jog dial.
6) Name the new folder and press the jog dial. All done!