While earlier today we asked “What else would you want on your Start screen?” a few people thought it would be cool to have live tiles that represent groups containing other apps. We’ve seen sketches of something like this possibly coming to the next version of Windows Phone, but Windows Phone Hacker has been working on a home-brew method of adding apps to live tile groups or “folders” so that you can better organize your Start screen.

As the developer says, “The Folders application requires a Mango device that is developer unlocked. We also must note that the setup is a little tricky. Don’t expect as fluid an experience as iOS, where dragging icons together turns into a magical folder. As you can see from the video, however, the end result is speedy and organized.”

The app is not ready for release just yet, but you can see how it will work in the video below.

Source: Windows Phone Hacker