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I would suggest either a Sony (350 or 650) or a Nook. They are both easy to use with online library catalogues and pretty easy to use. Maybe go into a Best Buy and have a look at them. If you are interested in the Nook at all I would also suggest going into a Barnes & Noble to look at them. Their staff should be better equipped to answer your questions.
I am not sure if you can make folders directly on the Sonys without hooking them up to your computer. I know that you can with organize great with Calibre (a free software for converting and organizing ebooks), and I am not sure if your wife would want to be using the computer to organize her books. Maybe somebody else can tell you more on the Sony.
On the Nook she can make shelves right in her menu or add to them. Organization isn't a huge deal if she isn't buying a lot of books, but if she is going to be buying some she would probably want to be able to organize them.
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