In OS 2007 on N800 it was possible to create folders within folders to group applications, but in OS 2008 I cannot see how to do this.

I go to Control Panel > Personalization > Panels > Applications > Organize. If I tap [New category] it is always created at the same level as the existing folders even if I select a folder in which to create it. I have also tried dragging one folder into another, but this simply moves the folder above or below the target. What am I overlooking?

its a new feature I suppose :|