Pinning to the start screen is a very versatile and powerful organizational tool, allowing one to keep easy access to commonly used apps, especially with live tile functionality, as well as pinning shortcuts to various features within an app with the touch of a button. If you happen to need a lot of tiles pinned to your start screen though, it can slow down what is supposed to be a very fast process of finding what you need when you need it. As of yet there's no easy way to combat such bloat for everyone, but if you have an unlocked phone, the Folders app aims to help solve this problem and is now on version 1.0.
The Folders app is designed to be run on both ordinary unlocked devices as well as ones with full root permissions though a single XAP. If the app doesn't detect root privileges it will revert to a less privileged mode, which can add system apps directly and other apps through a Marketplace search, and it supports both the standard Marketplace as well as the OEM variants, such as Nokia, Samsung, and HTC. You can build a folder inside the app, then pin it to your start screen for easy access. If the program can run with root privileges, it can read all installed apps on the phone without need for a Marketplace search, and it can also pin folders inside the application list as well. As this is all done within an app, not as an integrated part of the OS, live tiles will not work inside of folders, which simply provide shortcuts to the apps listed. Other changes in this new version include bug fixes and UI improvements, such as adding a tilt when selecting to mimic that portion of the standard UI. This is the best solution available at the moment for grouping of apps within Windows Phone, but we still have Windows Phone 8 to look forward to and Nokia did ask users if it would be a feature they'd like included should Nokia exercise their option to alter Windows Phone. In the meantime, you can pick up Folders here
[Windows Phone Hacker