You’ve taken the first step; you’ve moved your files to their proper folders (documents to My Documents, pictures to My Pictures, and so forth), and your next step is to organize what’s left. You’ll continue the degunking process by dealing with what’s now in your default folders and libraries.
Because a library offers access to both the personal and Public folders they represent, any subfolder you create in a personal or Public folder will be accessible here after you’ve created it. Any folder you create in a library will be included with your personal folder (not the Public one).
Click Start | Documents. This will take you to the Documents library. In the left pane, click the arrow by Documents so you can ...