Organizing Vista's Music folder (is a pain)

I sort of like the way that Windows Media Player 11 sorts out artists/albums (groups by artist first, then by album and songs in correct track order). But I would kind of like my Music folder to function this way as well.

Within my Music folder, the columns at the top can be sorted by: Name, Artists, Album, #, Genre, and Rating. There are other details to choose from by right-clicking. I don't see the point of even having columns to begin with if it just means that Vista suggests you throw every mp3 into the main Music folder without Artist folders and sub-folders for Albums, because that's the only way you can use them.

What I'm trying to say is that in the Music folder, sorting by Name, Artists and Album all do the same thing (simply alphabetizes the folders). And "grouping" just says that they're "Unspecified". If there were a way to get this (image) to look like this (image)?

 

I've never used Vista, but according to my XP knowledge, right click on the empty space in the Music Folder, and go to Arrange Icons by - Artist and then go to the menu again and click on "Show in groups".

 

They've completely taken that out. Everything gets grouped into "unspecified" and that's it. Way to go, Vista.