Ah ok, I see now. I think that interaction could be a bit more clear. I would be nice to be able to drag and drop the feeds in and out of the site groups, as well as expand/collapse the groups on the "News" page.
Also, when I added a feed, it wasn't immediately clear that I was making a folder because it grabs the name of the feed, I thought I had just added a standalone feed to my general list.