Audiobooks using Overdrive

First question, are you using the latest firmware?  If you are, and you can see an audiobook and podcast folder then the next steps are easy.  When you use overdrive to transfer the books it will default to music but when the wizard gets to the part where it check marks the parts to transfer, instead of clicking Next, click Advanced Options.  That will give you a box with the player folders and the default is music.  Click on Browse.  It will ask if you want a new folder and I always click No.  Then it shows you a pull down menu of the folders on the clip.  Scroll up and highlight the Audiobooks folder then click OK. Click Ok on the next box and then click Next (as you should be back to the transfer window).  Then everything will transfer to your audiobook file and you have the better bookmarking abilities.  I know that when you write this out it sounds a little confusing but once you go through it once it is really easy.  Just remember when you go looking for your book to go to the audiobook folder to find it on your Clip.  Let me know if this helps.