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Yes, in the Sony Reader Library you can create collections (or folders) giving them any name you like, and then drag and drop books into the folder. If you no longer need a collection you can delete it and the book will still remain in other collections. When transferred to the book reader, the collection will show up with the books in it.
In other words you could delete the 'Detective' collection and your book would remain in the 'Dresden' collection.
Hope that all makes sense!
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