Check out this Q from our 2011 FAQ. To the best of my knowledge, it applies to any eInk Kindle, though the steps to get to the various menu items would possibly be different.
http://www.kindleboards.com/index.php/topic,86014.msg1355367.html#msg1355367I will also note that the Kindle for PC app will allow you to collect everything. . whether downloaded or still in the archive. So you could use it to get things all organized and then, when the new kindle comes, load up your books and, as the final step, import the collections from the Kindle for PC.
But, for the record, I'm like Betsy. . .initially I kept all my books on my K1. When I first got my K3, I moved them all. By the time I got my K4 that had gotten old.

So I just moved the ones that I knew I'd be reading soon or wanted to have on the device for ready reference -- I have access to the others pretty much any time any where. And moving them all to the K3 was a real pain. . .I had over 1000 at the time and probably have 1300 by now.
