Gallery Issue - all pictures showing in Picture Library

So I have two folders, I want different pictures in different folders. The 'Move' option only works for camera pictures. I cut and pasted some downloaded pictures into another folder, that worked fine. Except those downloaded folders are now in both the Picture Library and my New Folder. If I delete them from the Picture Library, it deletes both copies. Anyone know how to keep the pictures in the New Folder but not the Picture Library, btw I'm on a Bold 9900 using OS7

What is you connect the device to a computer, and then 'mange' the images from there, using mass storage mode?

that just the way OS7 handles pictures no matter what pics you put in folders they will all be in picture library no way around it or changing it