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Underneath the Google Docs logo on the left hand corner of the screen is where the
New and
Upload commands are of the menu bar. When you click on New a drop down menu appears that lists various commands such as Documents, Spreadsheets, Presentation and Folder. Click on the
Folder command and a new screen will appear inside of the Google Docs area that is already open with the folder instructions.
Next to the folder icon is a form field where you can type in the name of the new folder. Under the form filed where you type in the name there is a commend option called Add description/status, click on that command and you can include a description of the items that you want to add into the folder that was just created.
Now that you have created a new folder, if there are documents that you want to add into that folder you can do so. Underneath the New command on the menu bar is the All Items, click on All Items to highlight it and then click on the Add to folder command next to the Upload command in the top menu bar. A drop down box will appear underneath the Add to folder command that shows the new folder that was just created. Click on the folder that you want to add the open document in and it will be moved into the folder that you have chosen.
For more information on using Google Docs and utilizing the collaboration feature that this application offers, see How to Collaborate on Google Docs. Also, if you would like a guided video tour of Google Docs, you can visit the main Google Docs site and at Google Docs Tour.