Create New Collection Dialog
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This dialog allows you to specify a new collection by providing the collection name, and initial placement within the hierarchy.

Let's say you have a database called MyClips, containing InBox, Overflow, and Safe. InBox is currently selected. You can opt to place your new collection BELOW InBox, making it a CHILD of InBox. Or, if you want it to be a SIBLING, then opt to place your new collection at the "top level" of the hierarchy.

As you press OK, you'll be taken to the Collection Properties dialog, where you can specify more properties

Access this dialog by right-clicking on a collection in the Collection Tree, or with the File | Add New Collection menu.