Hello, Art.

Sorry for the long wait.  A combination of spam filters, or possibly misbehavior by Mail.app caused notification of your post to be hidden from me until today.

I just retested these functions and they work fine for me, as you can see in the attached screenshot.  You see the two folders with the fat blue arrows designated to go to the top and bottom, respectively, and also in the Settings > Sorting tab I have bulleted Folders above bookmarks, so the Zee Folder is at the top.

However, this arrangement did not occur instantly after I made these settings.  It happened the next time that bookmarks were sorted.  If you want to see the results instantly, click in the menu: Bookmarkshelf > Sort All.