How do I do this? Do I have to create new folders?
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Connect your phone to your PC. Open your phone on your PC and you can organize them however you want. Yes you will need to make new folders. Personally, I just created folders called ringtones, music, notifications, pictures, wallpapers right in the main phone drive/folder. But a lot of people make one big folder called media, and put the individual ones inside that. Then just copy and paste each in to it's correct folder. Once you unmount your phone from the PC, Droid will automatically recognize each and put them into option lists, playlists, etc... wherever they need to be.
For the ringtones I just use Mabilo Ringtones. Its free, in the market, and they have a ton of already made ringtones. The app automatically creates the folder where the ringtones are saved.
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