I updated from 1.01.29 to 1.01.32, and noticed some changes.
The directory layout of the Clip is a little different. It used to show the Clip, and within that, ‘Internal Memory’, and within that, the folders. Now it’s just the Clip, and within that, the folders.
All the songs on the Clip from before the upgrade are not viewable in the Music folder, or any other folder. They are on the device, as I can play them, and they take up space on the Clip.
Using WMP11, I added a new playlist to the clip. The songs in the playlist transferred over fine, and I can see these in the Music folder, but the playlist doesn’t show up in the Clip’s playlists (though all the playlists from before the firware update show up just fine).