YUP! I played with it and got it to work. (I'm not the "powers" though!)
You'll see that you're blog entries are now catagorized "uncategorized" now.
Click on "blog settings"
Click on "manage catagories" - and make up "file folders" for different catagories you'd like to keep separate, click "save" for each one.
Then, go back to each old blog entry and slide your mouse just to the right of the blog entry title. A little "edit" pencil will pop up. Left click on that.
On the next screen, click "go advanced", and on the next screen, you'll get the several options. One is "BLOG CATAGORIES", and that gives you the option to move it to one of your newly made "folders".
Hope this helps.....good idea for getting organized, thanks for making me find the way, I LOVE the new board!