A great feature for a future update would be the ability to drag folders into other folders.
For example, I have a folder named "Unused Vocal Tracks" and another named "Unused Guitar Tracks".
I could make a third folder called "Unused Tracks" and drag both of the other two into the third thus cleaning up my screen.
 
Yay!

In other words, the ability to create Subfolders.
I initially understood this to mean the ability to drag the tracks in one folder to another folder.

[Merging of threads made this post redundant]

Just fired up my old XP laptop. I have Cakewalk 4 installed there, together with some saved forum posts from way back.
 
And guess what? Requests for subfolders...

Another vote to have the ability to have sub folders within a folder.

+1

I have been hoping for nested folders as well. It would clean my view. Console view folders might be helpful as well.