The manual states that playlists (M3U files) have to be placed in the same directory as the tracks they reference ; this seems to defeat one of the main reasons to create playlists - you want to gather-up tracks from various folders for a particular purpose (say ‘running’ or ‘driving’ whatever) rather than having to create a playlist all from the same album ?
Could a future firmware upgrade address this limitation ?
IIRC the same instructions are written for the Clip Sport (the sport and jam are based off the same hardware platform) but some users in the Clip Sport board have gotten playlists to work without being in the same folder. Try searching the clip sport board for playlists and try some of the things people there have done and see what works best for you.
You could use the go lists on the player to make playlists using the player itself. Each go list is limited to 100 songs. On the Clip Jam and Clip Sport though, only one song at a time can be added to a go list. The Clip Sport and Clip Jam have 3 go lists for internal memory, and 3 for card memory. I was hoping that the go list could merge songs from card memory and main memory, however on my Clip Sport I see that it has separate go lists from the card and the music menus.