Album organization/source list question

I'm a new iPhoto user and can be somewhat 'precise' about the organization of some things. In iPhoto 4 help it tells me that I can create a new folder in the source list and that the option to do so is under the file menu. I don't see that option and would like to create folders to organize albums. Anyone have any suggestions? Thanks.

Hi, Jeff. It may be that you, like many other iPhoto 4 users including myself, have been inappropriately supplied (maybe by Apple's Software Update?) with the iPhoto Help file for iPhoto 5. Open iPhoto, then open iPhoto Help, and click on the "What's New in IPhoto" link. Is the blurb that appears entitled "What's new in iPhoto 5?" If so, your Help file refers to a number of features that you won't find in iPhoto 4, because they don't exist in it. One of those is the ability to organize your albums in folders. Forget it — you can't do that in iP4.
There have been quite a few posts here from people who have the wrong iPhoto Help file, and to the best of my knowledge, no one has yet figured out how it happened.

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