That pesky Newsstand icon is sure to drive those who have OCD about placement of app icons on their iOS device crazy.

Technically the Newsstand icon isn't an app icon, it is actually a folder, and as we already knew, iOS doesn't allow users to nest folders. Thanks to TUAW blogger Dave Caolo, there is a workaround that allows you to place the Newsstand icon in a folder.

The trick is simple, and of course a bit buggy, but it works:

Screenshot by Jason Cipriani

Create a folder by dragging one app onto another. During our testing we found it easier to drag an app to to the icon closest to the Newsstand icon. Using the screenshot above as an example, the Verizon icon was placed on top of the Authenticator icon. This allows you to quickly perform the next step.

As soon as you let go of the app to create the folder and the animation begins, drag the Newsstand icon over the same app and let go. Screenshot by Jason Cipriani If you were fast enough, you should then see the Newsstand icon in the folder you just created. If Newsstand doesn't show up in the folder, you will need to drag both apps out of the folder and try again. Keep trying; eventually with the right timing, you will get it.

Screenshot by Jason Cipriani

There is one more caveat to hiding the Newsstand icon. In the future, should you tap on the icon to open Newsstand, your device will restart. Also, once you have tapped on the icon and your phone has restarted, the icon will no longer be visible in the folder while the folder is closed; tapping on the folder will reveal that the Newsstand icon is indeed still there. You will still be able to drag it out of the folder using the same process you would for any other app.

Have any more neat tricks to iOS 5 that you would like to share? Leave them in the comments or send us an e-mail!