First highlight the "parent" that you want the folder to appear under. If
you want it to be a new separate folder under C: drive, highlight C: Now
click on File.... New.....Folder. This will place a folder named New Folder
under that "parent". You can now name the folder whatever you wish it to
be.
You can delete folders by highlighting them and hitting the Delete key on
your keyboard. But if they are Folders automatically created by XP they
will be re-created.
You can make a desktop shortcut to open Explorer wherever you wish. In
Explorer, highlight the folder or drive you wish to have Explorer open to.
Right click, choose Copy. Go to your desktop, right click and choose Paste
Shortcut. Now name that shortcut something that reminds you of what it's
for. I have Explorer shortcuts on my desktop that open Explorer at the C:
drive level; at the My Computer level (with all drives showing immediately
below); and one that opens at the My Music folder.