You can create rule based folders when you are burning a data CD or DVD. (As you may already know, the standard Audio CD format does not support folders.)
A naming rule rule can be as simple as a single tag like [Artist], but if needed, it can be very complex.
The folder and filename settings are available in the burning options. You can access the options after you have started the burn process in Action Window > Burn Disc and "dropped" at least one file to the burn queue.
Here is a screenshot of the options menu (and some other tips that may be useful):
http://yabb.jriver.com/interact/index.php?topic=44630.msg306015#msg306015.
