In Photoshop Elements 11 Organizer with the file list panel showing on the left side, if I select an existing folder, right click on it, and then select to create a new folder, a new folder is created. If I rename this new folder the folder is left in the same "sort" postion that the "New Folder" was placed. It is only after I move at least one file into the folder that the folder is placed in the proper sorted location. This can be a little confusing in a situation where there are many folders already existing. I believe that Photoshop Elements 10 placed the folder in the proper sorted location as soon as the newly created folder was renamed.