Folder navigation should work for you–it’s the last choice under Music now that you have the new firmware.
You should consistently use one mode. I prefer MSC, because it’s simple–the Fuze just works like a flash drive. Other people like MTP because it allows a program like Windows Media Player to make playlists, etc. Using both modes will drive you nuts.
ID3 tags help you sort in lots of different ways–better than folder navigation once you have the tags.
This link has more on ID3 tags.
If you’re lucky, your music IS already tagged but in a format the Fuze can’t read. Get mp3tag, linked in the FAQ above, install it, and when you install it allow it to add itself to context menus. Change mp3tag’s default Write setting to ID3v2.3 ISO-8859-1 as explained in the FAQ.
Then connect the Fuze, right-click on an album folder on the Fuze, and have mp3tag open it. You can see if the tags are filled in–you should see Title, Album, etc. Highlight them all and just Save them to have them made into ID3v2.3 tags the Fuze likes.
If they’re not tagged, but have consistent filenames–like 01-Artist-First Song Title–mp3tag has a nice feature, Convert Filename to tag, that will fill them all in at once. Play around with it a little.
You can also re-tag the albums on your computer, and send them over again to the Fuze. Or you can re-tag them on the Fuze. Just make sure the new tags get to the Fuze.
Whenever you rip an album, or download it, just run it through mp3tag first to make sure the ID3 tags are in the right version. It only takes a few seconds.