Folders - Up to 20 Icons in One Folder

Create a folder: jiggle the icons then drag one icon onto another icon.  A 'folder' appears with the two icons inside that folder.
Remove an icon: open the folder and drag the icon outside of the folder.
Delete a folder: must remove all icons from the folder then iPad will auto-delete that folder.
Rename: open the folder and tap the name at the top and key your new folder name.

Icons

Rearrange:  touch and hold an icon until it 'jiggles' then drag to where you want it. Click Home button to save new arrangement.
Move to another screen: 'jiggle' the icon then drag it to the either the left or right edge of the screen depending on what screen you want to put the icon.  You'll need to 'hold' the icon still at the edge until the new screen appears.