Thunderbird has address books and mailing lists. Maybe you are calling an address book a folder. If so, open the address book window. From the menu bar select File-New-Address Book

No menu bar with File? Press the alt key.

I no longer get the old options. Here is what I see without any way to make a new folder. (Folder example: AVRADA or BCUG. If I try to add a folder I get: Home or House, which are lists, not folders.

Not sure what you are trying. I have listed the instructions above. There is no such thing as a folder in the Thunderbird address book window. There are only address books and mailing list as stated above.

Maybe you could state what you are doing that is not working.

As shown in the clip, AVRADA BCUG, etc. are folders or groups, each of which contain list of email contacts and addresses. The Personal address contains the total list of all in all my Folders/groups. The sub folders within Personal.., are lists while the AVRADA and BCUG are, or as least as I understand them are folders within which I have many contacts and in some cases one or more mailing lists.

Personal..

  List 1 
  List 2
   etc.

Folder 1 Folder 2

While I can create new lists, I cannot create new folders

The headings and options available with Thunderrbird for years are no longer available to me. I have tried to delete and reinsstall without any change.

You understand wrong. All the items with the blue BOOK beside them are address books. You have two default address books when Thunderbird is installed. They are the Personal and the Collected address books. If you want a new address book follow the instructions I provided and forget the term folder when referring to Thunderbird and it's address books. It does not apply.

I see no way to add an address book. I have over 20 existing 'address" books, all added in the past. How do I now add an address book?

Seriously? Maybe this will help. It has pictures. http://tips4pc.com/thunderbird/how_to_create_a_new_address_book.htm

The problem is when I click on Address Book, I get no menu bar(s). I get only the title bar. If I click on the title bar, the picture/graphic gets larger. If I right click, I get a drop down showing: Move, Size, Minimize, maximize. That's it. No menu bars and no way that I ca see to get the choices shown in the "pictures" of your instructions.

Press F10 to (temporarily) show the Menu bar (On Windows Alt also works as mentioned above)... If you want to see it always, choose View -> Toolbars -> Menu Bar

Try reading my first answer again. A missing menu bar is addressed.

F10 did it. I had no idea. It all makes sense. Everything works. Congrats to you for solution.