We've covered "Folders" before, the app from Windows Phone hacker which allows you to add folders to the Start screen. The first release involved using an editor on your desktop to make the folders and was a bit tedious.

Now, a new branch of development has occurred and it has become infinitely more useful in our opinion. Starting today, you can load a XAP file (and an optional secondary one) and just create folders on-the-go without the need for a desktop. The task is simple: create and name a folder, add apps by using a Marketplace-lookup or System apps (e.g. Zune) then pin to the Start screen.

The trick does not require interop access meaning anyone with a developer unlocked device can do this and due to its simplicity, we have to give a big thumbs up to this homebrew tool. Read more at Windows Phone Hacker where you can download the XAP files right now.

Thanks, Maximilian, for the tip!