The Windows file system is based on folders, So the system is hierarchical, or "tree structured." Folders are the same as DOS directories and subdirectories. The benefit to you is better visual organization of your files and information. You can create a folder hierachery to help you keep track of your of your files and organize your work based on file types or projects.

Working with Folders and Files in My Computer .
   What happens when you travel through the folder hierchery of a typical disk drive?. First, you open the My Computer window to display the drive objects for your system, next, you double-click the drive c:\the object opens a window showing the files and folders on that drive. You can then double-click a folder( the docs folder is an example) which would show a folder that you might want to work with.

   Once you have windows open that show the contents of drives and folders, you can work with the files and folders in the following ways:

Starting programs.
  Double-click a program object to start the program.
Opening documents.
  Double-click a document object to open the document for editing.
Printing documents.
  To print a document, click and drag the document object over the printer object. the printer object may be contained within the printer folder in my computer)
Copying and moving files
  To copy or move a file, just click and drag it to a new location.
Seeing an object's menu.
  Display a menu of things you can do with an object by clicking it with the right mouse button.