The folks over at whited00r, who are the one’s making custom firmwares for your old idevices, have come up with a way to enable folders on your iOS 3 devices. There are many reasons for this to be helpful. In fact, my brother has a iPhone 3G that is very sluggish and iOS 3 Runs much faster on the iPhone 3G than iOS 4. The only reason he updates his phone is because obviously, iOS 3 is lacking some key features, one being folders.
This should be a great update for all those iOS 3 users!
Check the demo below of the firmware in action!
The team is geared up in introducing this in their next release of whited00r tool. You can get more details here