Last week, Google Reader released a version that fixed a Fixed a few bugs.

They also started to address a usability issue I raised:

We also snuck in a small feature with this release: when you subscribe to a feed, you’ll get an “Add to a folder…” drop-down. This way, you can move that feed to a folder right there and then, without having to go to the settings screen.

Unfortunately, they aren’t quite there yet. You only get the option to add a newly subscribed feed to a folder if you use the subscribe feature on the Google Reader page. It doesn’t work if you use their subscription bookmarket, or the RSS detection/subscription UI built into FireFox 2 and IE 7.

Maybe next week?