If you create the m3u exactly like i did in the post linked below it works.
http://forums.sandisk.com/t5/Fuze/Problem-with-playlists-M3U-M3U8-s/m-p/221946/highlight/true#M1628
If you create the m3u exactly like i did in the post linked below it works.
http://forums.sandisk.com/t5/Fuze/Problem-with-playlists-M3U-M3U8-s/m-p/221946/highlight/true#M1628