@echo off
setlocal
if errorlevel 1 goto noluck

:: strip quotes
set ROOT=%1.
if %ROOT:~0,1%.%ROOT:~0,1%=="." set ROOT=%ROOT:~1,-1%
set ROOT=%ROOT:~0,-1%
:: ask for the root if we weren't told
if "%ROOT%"=="" (
set /P ROOT=Enter root folder or drag^&drop here:
)
:: strip quotes
set ROOT=%ROOT%.
if %ROOT:~0,1%.%ROOT:~0,1%=="." set ROOT=%ROOT:~1,-1%
set ROOT=%ROOT:~0,-1%
:: quit if they really aren't talking
if "%ROOT%"=="" goto :eof

pushd "%ROOT%"
if errorlevel 1 goto baddir

:: do the stuff
for /D %%d in (*) do call :move %%d
for %%d in (*) do call :move %%d

popd
goto :eof

:baddir
echo "%ROOT%"
goto :eof

:move
set WHAT=%*
:: skip 1-char long names
if "%WHAT:~1,1%"=="" goto :eof
:: make the section if it doesn't exist
if not exist "%WHAT:~0,1%" md "%WHAT:~0,1%"
:: brush your teeth
move "%WHAT%" "%WHAT:~0,1%\%WHAT%" > NUL
goto :eof

:noluck
echo Sorry, your OS isn't special enough.