1E have released a free utility for SMS 2003 SP1. You can use the tool to re-arrange your existing flat package structure into the tree structure made available to us with SP1.
With SMSOrganiser you can turn a list of packages into a group of similar functionality. For example you could create an Administrator folder and place all packages that Administrators would use, similarly by creating an Office folder you could place all Editor, spreadsheet etc related packages in this folder.
It can be downloaded from