new itunes feature: folders

i think the uptade before the most current one allowed itunes to have folders. not really sure though. so i could have all my rap "smart albums" in a folder called "rap". well that exactly what i did, but now i dont want that. and if i delete the "rap" folder, it deletes all my smart albums. i just want all my smart albums back to normal. is there any way to do that?

Click on the hierarchy triangle to expand the contents in the folder. Now, drag the playlist below the last playlist in the source menu, where all your playlists are. If the source list is long, and you can't see the last playlist, just hold it near the bottom of the list, and it will start to scroll downward. Lastly, you'll see white space below the last playlist, you'll want to put your smart playlist there. Once it's at the bottom, then just drag it wherever you like after that.