Okay... I think I figured this one out. You guys were just waiting, huh? Watched another video... did another "try". Looks like it worked this time. Created the catalog folder first inside C1, using the C1 browser, clicked "New Folder" and created it - old DOS style... then managed to get everything line up. Sort of. Subfolders were created. Yah! But I'll have to noodle around to see whether the core folder has just the preview images and the "ORIGINALS" folder has the RAF and JPEGs. Hope so. Anyway... DAM (and that is aptly named btw... just sayin') angst seems to be alleviated a bit.
Lynda.com has a decent set of videos btw on Capture One Pro version 8.
Odd that the whole of the program flows easily... but this whole DAM thing seems one of the more difficult. Maybe that's because it's "new" or because it's not automated to the degree that LR's is...I'm not sure. I think it's good, btw... because I've never been comfortable with LR's automation of something so basic as "where are my files?"
So thanks for your patience and not answering. Guess you knew I'd figure it out, huh?