LG KP501 File to Folder Problem

Recently I have bought a LG KP501, and have been transferring all my photo and video files from my old phone.

I have been creating folders in My images and My Video, moving the chosen files to their desired folders.

However, once I have been doing this, I go back to the Media Album, click on My images/My Videos, and the folders are either there or not, and the files I have moved are still in a massive list below?! Also if the folder can be seen, the moved file is in there as well as the massive list! I delete the moved file from the list, and i got into the folder were I moved it to, and it has been deleted from there too!!! AAAAARRRRRRRHHHHHH!!!!

On my old phone you moved files to folders, so they werent in a massive list.

If this is how the phone is configured, then what is the point of creating folders if they are still in a massive list with everything else!

Need help, pulling hair out and it hurts!

Steve

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Update.

After hours of trying last night, I have narrowed the problem down, and can explain a little more clearly what is happening/going wrong.

On the external memory card, in My Images, I have created a folder to separate some photos from other ones.

However, when I go back to the Top Menu, and select My Images, the folder does not appear, and all photos that have been put in this folder that does not appear, are in a list below the default folder with a memory card symbol in the top right corner of the thumbnail of each photo.

I have arrived at the decision that, after the SUCCESS of creating a folder on the Phone Memory and SUCCESSFULLY moved a photo from the list to this folder, that there is either a fault with:

1. The Phones Software
2. Problem with the MicroSD Card

I have formatted the MicroSD Card on my PC and formatted it on the Phone itself, but this hasnt solved the problem.

Does anyone else have a Cookie KP501, so I could ask them to preform the same operation to see if it is my phone thats broken or it is they way the phone works.

instead of going to my sounds straight from the media album, go to
media album-my memory card- my sounds. This displays all my folder there.