If you use Windows Explorer the default base view (where the program starts viewing) is Libraries. Libraries are not actually folders and so you may set them up the way you prefer including stacks, groups and saved searches. I prefer to move my Libraries off of the main drive for two reasons. First, as the Libraries grow they will take more and more of the prime real estate of your hard drive which you should use to optimize your system for speed (for more details look up my previous comments on O&O Defrag). Second, I prefer to have my primary drive setup without indexing services.
Under Libraries you will see Documents, Games, Music, Pictures, Videos and of course others if you set them up yourself or as custom programs are installed. These individual libraries are designed to provide organization to any location or locations you choose. When you choose to arrange views by Month, Day, rating and so on you are actually creating a virtual folder that doesnt have any real physical form. Actually all of the Libraries structure is virtual. The purpose is to aggregate content from numerous physical folders so you can set up your own custom infrastructure. In other words you can link to many different physical folders on your system even across drives and the Library view will display them according to your choices.
There are two free tools (programs) that I suggest you download (you can decide if you need to) to make things easier. One is Windows Live Photo Gallery that includes a lot of features you may find very handy. The other is Zune which despite the failure of the hardware device is a program that makes staying up to date on podcasts, music and videos (and managing Libraries) very easy.
