Stock iOS 4.x does not allow you to place a folder inside another folder to gain more visible slots. But now, you can create folders inside folders (or create sub-folders) on jailbroken iOS 4.x iPone and iPod Touch using an upcoming Cydia app FoldersInFolders.

For example, after creating games folder you can create one or more folder like action games, board games and so on. You can keep creating folders, inside folders, inside folders, etc. Want to know, how this Cydia app will work? Hit the FoldersInFolders app video after the break.
There is no restriction on the levels down. Even the video show 3 levels at least, but still, goes on and on. Limneos, the developer behind infamous app SBRotator has not shared ETA or pricing. Stay tuned for more such updates on iPhone app and tweaks.
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