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jangell2: To display only collections you need to change it to sort "By Collections" and not By Title, Author or Most Recent. Once you do this you will only see your collections (plus any books that are not in *any* collection).
Unolord: Are you sure you reset the kindle as the instructions say? You can't just turn it off and on, you have to do a real reset (either holding the switch in the on/off position for X number of seconds (forget the exact number) or going to the settings page, hitting menu and choosing Restart). Either way you should see it take a minute or two to boot up and after that you should see the collections that you created in the app.
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