How do you create folders in photo's

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In an IPOD4 (or IPhone for that matter) how do you create folders within Photo's to segregate your pictures in to meanigfull collections, rather than just random bunches.
Thanks
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Bummer - seems like wasted effort - to move all the photo's to a computer, delete then from the IPOD/IPHONE,  organize them, and then move back to IPOD/IPHONE. Oh well, is what it is.
Thanks
Mike