Actually you should get used to libraries because that is how W7 and especially the security features are designed. They are moving you more and more away from knowing "where" the files are and more into grouping them by purpose (Documents, Music, Pictures, & Videos).
There are some simple reasons for this. Each computer can have multiple users, even a single family computer can be set up so Mom, Dad, each child has an account and they can each have their own data without others in the family easily looking at it, but if they do want it available for all to see they can put it in the Public folders. Mom doesn't have to know that her documents are in C:\users\Mom\documents and Dad doesn't have to know his are in C:\users\Dad\documents because with libraries when Mom is logged on her documents are under libraries in Documents\My Documents and when Dad is logged on he sees his documents in Documents\My Documents, in fact when anyone logs on they don't have to know or care where the files physically are, they just need to know their documents are always under Documents\My Documents.
And you can absolutely create folders under libraries but you need to be at that My Documents, My Music, My Pictures, or My Videos level. This is because there can also be Public Documents, Public Music, etc and those also get linked under the library level of Document, Music, Picture, & Videos.
Believe me I had trouble with libraries when I switched to W7 too because I was used to keeping my data on a separate HD under D:\Data. But once you sort your data into the 4 libraries it is quite nice.
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