Your first two steps of creating the worksheet and the view folder are correct. I think you provided wrong information for the APINavigator_NewNavigatorViewID function. Namely the parentAndChild guid is provided incorrectly and also saveItem probably needs more information (specifically the guid of the navigator item). In general it's important to distinguish between the Database and a corresponding Navigator Item.
Anyway I found it's easiest with the APINavigator_CloneProjectMapItemToViewMapID function. To get the guid of the navigator item corresponding to the worksheet database, we use the search function. Note that the following example only works if the "test" worksheet is not yet created.