Thank you. That seems to work in all Finder windows. But unfortunately it does not seem to work in Applications, at least not in those I use regularly (unless I am doing something wrong), including Firefox, Google Chrome, Dreamweaver, Photoshop, Pixelmator, Open Office, MS Office for Mac, MoneyWell, & Google Earth. When clicking on File>>Open in those Applications, none lists folders at the top, files below, as Finder does after clicking Arrange By>>Kind.
That's okay. I can live with it.