You have the latest update. Apple has said tha, when iOS 4.2 is releases "in November", it will be available for iPad. So, the update should be available sometime between now and November 30th.
Dchrstmn wrote:
Ok thank you. I read that you needed iOS 4.0 to create app folders on the IPAD so that must have been for IPhone only.
You'll be able to create folders when 4.2 comes out later this month. Give Apple a week to get the update ready and you be able to make as many folders as your heart desires. :P