No you can't have more than one folder, my iPhone did the same thing I started with 3 folders and then they dissapeared and all went into 1.

In the new os you can make albums but they are still in the camera roll folder so I think it's doubling the memory each pic takes up if you move them and if you move them they are still displayed in the camera roll so still a faf when your looking through.

Unless someone can enlighten me??