Praise be to Allaah.
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.