Originally Posted by nynaevelan
Not entirely accurate. You can manage them on the pc/mac free programs, then on the Touch use the Import Collections functionality to import them into the Touch. Make sure all the books on the Touch are in collections prior to the import and to avoid problems make sure you have updated to 5.0.3. This is the only method other than the Touch itself to get collections on it.
You can do that to import the actual collections into the Kindle, yes, but will it put the books into the collections for you? I didn't think it would. Apologies if I'm wrong about that.