Collections are really just addresses to the pictures, and the pictures themselves do not move.
So you can not move collections, as then the addresses mean nothing.
I messed up by inadvertantly creating another "COLLECTONS" folder. How do I delete the folders and start over?
Working in CS5
In Bridge click on Collections Panel, then right click on collection and choose delete.
Thanks Curt: I knew there would be an easy solution once I framed my question correctly.