If you don’t see Folders as a choice at the very bottom of the Music list (Artist, Album, etc.), update your firmware. Folders may not have been in the early versions of the Fuze.
Use the manual method, not the Updater–this is the last update.
http://forums.sandisk.com/t5/Fuze/Sansa-Fuze-Firmware-Update-01-02-31-amp-02-03-33/td-p/139175
