how do i create a document, then a directory and save the document in it.
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You could view it with "less filename.txt". But this is just for viewing, not for editing.
There are many different editors you can use. The most used will probably be "vim" or "vi" and "emacs". These are very powerful but a little bit big, too. I prefer the little editors pico or nano. Just try any of these editors by typing "editorname filename.txt".
woha... uh .... all those commands are above me, what I do is save the document in my home folder, then make new folder, then cut and paste. Seems to work, unless you aren't in graphical mode or you have a X Window system that doesn't have cut and paste (and there is one (ive seen it with my own eyes)).