From the Cog menus (in the top right hand corner of the screen), look at 'Library / Options' and enable 'Sort by Artist'

Chris

Tracks to be considered as the same album:

• The same album and album artist (or artist if unspecified) tag
• The same folder

Indeed, this is a strange limitation that songs to be considered as being part of the album MUST be in the same folder. I have pointed out the same in #1953 to no avail. Makes it rather inconvenient from file organization point of view if album consists of, say, 3 discs with many songs on each. But I guess we will have to live with it.
It is also interesting to point out that THIS WAS NOT THE CASE until some release in the past and songs were properly combined based on album and album artist no matter into how many folders songs were stored. For some reason decision was made to change the behaviour.