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From the menu bar, Bookmarks->Manage Bookmarks (or CTRL+B).
This opens up the bookmark manager.
Notice that that bookmarks are divided into columns (Name,Location, Description, etc...)
Click on the column you want to organize and it arrange it (name organizes alphabetically)
If you want a different column, go to View->Show Columns->......
This is on Mozilla 1.5b.
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