Hello Sirisha Peyyeti,
You can use this article
in our help, which demonstrates how to create folders and save the files in them. Please let us know if you have further questions on this matter.
the Telerik team
Register for the Q2 2011 What's New Webinar Week. Mark your calendar for the week starting July 18th and book your seat for a walk through of all the exciting stuff we will ship with the new release!