Lots off stuff, with some pain

I have been using Bloglines for quite a some time; it was world's no. 1 RSS feed reader for long time.
And then came in Google Reader, its all fresh Ajax scripting combined with Google's search database provided excellent growth to it compared to Bloglines.
And now, Google Reader enjoys the top position. Bloglines started beta in parallel, did well, but finally, it was shut. And I was shocked!

MerchantCircle bought Bloglines and now it is in process of migration of feeds from Bloglines to Netvibes.

Anyways, coming back to the point, Google Reader has everthing that you don't need from a RSS feed reader, however, it does not have a simple "Create Folder" button. :-x
It's help is dull and old: http://www.google.com/support/forum/p/reader/thread?tid=727517bedacca0b8&hl=en
It's really really painful to create a new folder in Google Reader and on top of that you can't have nested folder, i.e. folder inside a folder.

I don't know what to do; just imported an OPML file got from somewhere and now those new feed folder are lying in my reader view, there is no way to manage them.
Google says create a bundle, which is a virtual one, and also, it can not have folders in it. :(

Any solution?

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