Praise be to Allah.
The hadeeth quoted is saheeh, but according to the scholars it is to be interpreted in the manner that you mentioned, which is when there is no barrier between the men and women. But if they are screened from the men, then the best rows are the front ones and the worst ones are the back ones, just as is the case with men, and they have to complete the front rows first, then the next and so on, and close the gaps, just like men, because of the general meaning of the proven hadeeth from the Messenger of Allah (blessings and peace of Allah be upon him) concerning that. May Allah help us all to do that which He loves and which pleases Him. End quote.