Thanks to MobileRead, I have now turned on Whispernet and have reset and turned my Kindle off and on 15-20 times, looking for the update. I saw a screen shot over on the kindle forums - collections is just menu, add to collection. You can have something in multiple collections. Once I get the update (soon, please?) I will sit down with Calibre and add the books on my kindle to collections. So at least I can come up with my categories while I am waiting.
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