Just noticed this really weird thing. No folders and no way to create folders?? 

Most arduino libraries have an examples folder. I cannot for the life of me figure out how to create one in the solution that I have. I have tried creating externally in my Arduino/libraries/[mylibraryfolder] folder. I then tried to add it in as an existing item but got an error.

Totally flummoxed by this trivial issue. Not intuitive at all.

I've attached the error and my Solution tree

Up to this point, I have another Arduino project in the Solution with the referenced library which is great for a simple test but I want to create examples now that users of my library can use. Hence the above issue.

Many thanks

Pete....

Click the little show all files icon above the solution explorer. That will switch into physical files and folder view for the selected project. Vs has the two views.

Suggest you create proper Arduino projects for each example. Doesn't make sense to add them to the shared library project. They are not really part of the library.

Just click file..new..project to create an example..maybe i am misunderstanding what you are trying to do.

You have complete control but treat examples as their own projects