iPad allows users to group apps and place them inside a folder. This feature is useful to organize apps of related genre in to one folder. Let us take the below example where I want to create a games folder for DogTrap and Peekaboo HD apps.
Tap and hold any one of the above games until the X mark appears for all the apps. Now drag and drop DogTrap to Peekaboo HD. This would display the create folder option where you can specify name for the apps folder (here it is Games).
Now tap the iPad menu button to confirm the folder creation.
The iPad App screen should display the newly created folder.
Remove an App or Delete Folder
All the apps inside the folder will be displayed on Tapping the folder. Press and hold app that you want to remove the folder, drag the app outside folder once the X mark appears above the apps.
Similarly removing all the apps from the folder would automatically delete the folder.