Welcome to MobileRead, geophyrd!
The organization thing is something most folks run into pretty quickly. The general consensus on the best way to organize books on your Reader is to keep them on your PC instead.
The organizing tools on the Reader are so rudimentary, that they're just more cumbersome than most folks want to mess with.
What most folks end up doing, and what I do myself, is use the Reader itself as an electronic reading shelf. I put the books on it that I know I want to read "next" and take them off as I finish them. The internal memory is way more than adequate for the dozen or so titles I have on it at any given time with this approach, and it allows for organizing them on the computer in whatever way makes
sense, rather just whatever the software will allow.
Unless you have some particular reason for needing to carry a proverbial butt-load of books on your Reader at all times, you may find that this sort of approach might work better for you too.
