I want to make folders in Itunes on my desktop for books I have already read to cut down on the amount of book I must look thru before transferring to my Ipod.

How do I make folders in Itunes to move audiobooks that I have already read but want to keep to? I have been able to create one in playlists but I can't transfer anything into it. Up in the library section, I am unable to find a vehicle to generate a new folder. Anyone know anything about this?

I should also point out that when I connect my iPhone, it DOESN'T appear as a connected drive on the desktop. Not sure how this can be so, since the iPhone also has a drive and also functions as an iPod if I want it to. I must have changed some setting to achieve this non-appearance, but don't remember what I must have done.
What's the secret?

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