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In Reader Library there's a + button in the bottom left corner. Click to create a collection (make sure you've highlighted either the reader or library, wherever you want to create this collection, before you click). Select the books you want to move and drag and drop. If you're creating the collection on the reader, you have to move the books to the reader first, then put them into the collection from the general book list. Note that *all* books will stay listed in the main list, and you can list books under multiple collections. It works more like tags than folders. When you drag and drop, look for the destination to be outlined in a black rectangle.
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