How do I configure Gmail to Mail?

I have a few folders in my Gmail inbox (that I created) and I want to have these in Mail, but the only folders that showed up when I hooked up my account were Inbox, Sent, and Trash (Gmail and On My Mac).
How can I get these to show up?

Also, when I read an email in Mail or on Gmail, they aren't marked read in the other. If this is possible, could you help me out?

Thanks!

Use IMAP instead of POP. Google help has the instructions.