Within a folder, we should be able to chronologically without having to see all of the posts from one feed.
Unless I am missing the setting, it seems that posts are arranged by feed, then chronologically. In Google Reader, we are able to see posts chronologically, even if it means not showing all of the posts from one feed back to back (i.e. If Feed A has a post a noon and then 2:30, and Feed B has a post a 1:00, I would like to See The post from Feed A, Then Feed B, Then Feed A. It currently Shows the two posts from Feed A, then Post from Feed B)

Actually, posts are supposed to be sorted by the time they are fetched. Due to some feed fetching delays we are seeing right now because of the massive influx of new users, new posts are being grouped by feed. This should stop happening as soon as we are back to normal feed fetching schedule. Please check http://status.theoldreader.com/ for the updates.
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Anthony Bellissimo commented
The odd post ordering is one of the more jarring changes vs. Google Reader. The whole idea of having feeds grouped is so I can see interleaved posts from all the feeds in the group arranged chronologically; right now things are in a weird partially-interleaved order. They're not totally grouped by source feed (they tend to show up in blocks), but they're certainly not arranged by post date.
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oggo loggo commented
To me it seems they are arranged chronologically, just like in google reader.
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Jeff Rivett commented
In other words, when I'm viewing All Items, and the list includes posts from several feeds, the posts should be in chronological order, not feed order, then chronological order.