A new feature for the iPhone (iOS4) allows users to create folders to organize their Home screen and gain much more control. By stuffing apps into folders your home screen will be a lot more organized with a lot less clutter.
How to create a folder on the iPhone (iOS4 update):
1. Touch and hold any icon until all the icons begin to wiggle like a bowlful of Jello.
2. With the icons wiggling and jiggling, drag the icon into another icon.
3. The iPhone creates the folder and the 2 apps inside. To change the name tap the name field.

4. Press the Home button to save all changes.
Note: To delete a folder on the iPhone simple remove all the apps out of the folder.
iPhone Folders FAQ:
1. How many icons go into a folder?
You can put up to 12 icons into a folder.
2. How do I name my folders?
The iPhone automatically names the folder based on the original app you use to create the folder, but you can change the name anytime after.
3. Can I move and rearrange folders?
Yes, just like individual icons, folders can be moved around the Home screen or even to the Dock.
{ 4 comments… read them below or add one }
I jailbroke my iphone 3gs recently. When I try to create folders by moving a wiggling icon over another one, rather than creating a folder, the icons move around springboard. due to this, I am not able to create folder. If you have experienced this then please provide me a solution.
my too. I am unable to create a folder…
It keeps wriggling off instead.
Mine too please e mail me are u allowed to make a folder on iphon 3gs (jailbroken)
Thank you. It helps