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This doesn't seem to work as you describe:
Step 1 OK
Step 2 At left top I have Mailboxes Edit. Below that All inboxes, Gmail, pacific.net.hk, VIP, All Mail (Gmail), Important (Gmail). In bottom pane headed Accounts and Below that Gmail and pacific.net.hk
Which button do I press next?
I watched your video.
I need to create two-level folders as in Outlook Express. For example a Folder called Friends then a number of subsidiary folders each with the name of one of my friends. Is that possible?
Your video shows a Gmail account. I think I read that iPAD offers the folder facility just for Gmail and one or two other IMAP services, but it will not work on POP3 servers - that is why I asked whether there was a APP ofering a more universal Email Client?