folders are much like the folders in a file cabinet. they can contain files and other folders.
files are much like paper documents-letters, spreadsheets, and pictures-that you keep on your computer. in fact, all information on a computer is stored in files.

to create a folder:
1 in windows xp, click start, then click my computer on the start menu.
- or -
in windows 2000, double-click the my computer icon on the desktop.
2 double-click the drive or folder, for example the local disk (c:) drive, where you want to put the new folder.
the drive or folder window opens. if you do not see the contents of the drive or folder, click show the contents of this folder.
3 click file, new, then click folder. the new folder is created.
4 type a name for the folder, then press enter. the new folder name appears by the folder icon.