Albums and Albums Categories

I have Photoshop 8.  I am attempting to create album categories but can not seem to do it.  In trying to create them , I click on create albums and then create album categories.  I enter my new album category name,  I never get a choice of anything to nest it under except the Top category for albums ( can not place them under the Album name that I want ) and it just creates the category album seeming underno parent category.  I had an older version and had no problem with this previously.  I could group my pictures by years as the parent album and then as I wanted (Christmas, birthdays, etc) as sub albums.  What am I doing wrong??

I believe that I am doing exactly what you are telling me-- but to no avail.  I click on "new album" The album category comes up "none-top level" and then right under that I type in "2011 Photos".  The album name appears in my album listing as expected.
Now, I want to create a subcategory album that nests under it.  I go up to the tab and click "create new album category" - I name it OK but then "2011 Christmas" does not appear in the drop down option (as it seems it should)  - only "none-top album"  -
I have looked all around to see if there are any preferences or anything that might eliminating the possibilty of creating subcategories but can find nothing ?????? Driving me crazy

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    I always learn so much by everyone's postings and your response. Thanks much!
    Date: Fri, 17 May 2013 08:23:30 -0700
    From: [email protected]
    To: [email protected]
    Subject: Photoshop Elements Help | Organize your photos in albums and album categories
        Re: Photoshop Elements Help | Organize your photos in albums and album categories
        created by dj_paige in Photoshop Elements - View the full discussion
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