Cannot delete folders in iTunes when trying to re-arrange apps into folders

When you remove the next to the last app from a folder, the folder should disappear. It does not. The app remains there. If you remove the last app, the empty folder remains. I am using iTunes 9.2f1 (45). I just updated my mac mini to the latest fixes for Mac OSX. (10.6.4). I use a logitech bluetooth mouse.
I can drag the empty folder to an empty page, but it then crashes iTunes.

Thanks,
I tries setting the card to 'none' on iTunes on my PC earlier and it didn't fix it.
I'll be back in front of my PC tomorrow so will try re-adding as you suggest.
Do you think this will fix the issue in iTunes App and App Store App where I can't view my account? (keeps asking for password over and over).
Thanks again

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