Have lost the ability to create new Folders. I follow the instructions given for that purpose, but do not HAVE a Create New Folder link in Left navigation.
In the left navigation, above your current custom folders, there should be a line My Folders with a plus (+) sign next to it. Click on the Plus sign, and that should bring up the Create/Manage Folders section in the main window.
Just type the name of the folder you want to create where it says New Folder and hit the Create button.