No need to jail break
The Newsstand ?application? isn?t really an application at all; it?s essentially just a stylized folder which stores the latest updates to your favorite news sources. Since it is a folder, anyone that?s used folder management in iOS will know that you can?t nest a folder within a folder, but someone over at The Coding Massacre has found a way to do just that.
To put Newsstand into a folder you need to be quick. The work-around requires a new folder to be made, so take any two apps and place one upon the other to create one.
While the new folder is being made, this is your chance to get Newsstand out of sight. As the new folder is being created you will need to quickly drag the Newsstand icon into the folder. If you are quick enough Newsstand, will go into the folder, and the job will be done. This simple straightforward tip will work with any other folder, too so you can now place any folder into another ? handy!
It?s worth noting, however, that with Newsstand (or any other folder) placed within the newly created folder it will no longer work. Open Newsstand in another folder, and your iPhone will restart.
To get Newsstand (or other folders) working again, you will need to drag the wooden folder out back on to a top-level screen.
I copied and pasted this info from the fabulous Chris Brandric at the Apple Blog. Please say thanks to Chris everyone.