[santra]

Never mind—I figured it out. The key is that you cannot create a new folder with the UI on the iPad if only one outline is selected; you MUST select at least two in order to have the "New folder" option. This is not stated in the OO 2 for iPad Manual: "Tap the folder icon (Move) in the navigation bar to move a file to another folder, or to create a new subfolder containing the selected files." Moreover, the document is incorrect in another respect: there is NO folder icon. There is a box with an arrow pointing up that has Apple-type "share" options.

I am glad that I figured it out, and I am doubly glad that the feature exists, but I am very disappointed that the manual is completely inaccurate, and that the architecture of the app mandates that you must select two outlines in order to have the option to create a folder.