After some investigation, I found some instructions at the bottom of the feed column (in Edit mode) about selecting (one-click) and so I selected then pondered the pretty yellow box, then pressed and dragged and lo and behold you can manually drag your folders and feeds around. Plus you can drop feeds on the folders.
Thank you Bloglines!
(Just checked their blog and I could have learned about the new features there. Oh well, always fun to discover these things yourself.)