If I were to make a folder inside my media folder named videos, would the droid automatically place any new videos I take in that folder? And does the same go with my pictures?
My Droid seems to find videos wherever they are on the SD card. How they get organized in Gallery depends on where they are. They might be in a folder called download, or camera videos, etc. They don't need to be in the "Media" folder. That's just so the phone can find ringtones, alarms and notifications.
Right now, mine end up with all the pictures in SDcard/DCIM/Camera.