I could not get it to work, so finally I decided to just import books in batches of 100 and do a collections import between each batch. I was able to get this to work, although I had a few that didn't import. But I was able to fix them manually, which was better than trying to create collections on the entire list. I don't think Amazon designed the import to handle a large amount of books. Now I just have to wait for them to re-index so that I can FINALLY get to actually using my Touch.