. . . .(I reccomend saving the playlists to the MUSIC folder on the Fuze).
Just to clarify, you _ HAVE _ to store an .m3u format playlist in the MUSIC folder along with the music, NOT the PLAYLIST folder! They will not work if they aren’t in the MUSIC folder. They will come up as < EMPTY > ! Only .pla format playlists will work in the PLAYLIST folder.
Actually, they don’t have to be in the MUSIC folder, but the do have to somewhere within the same branch as the songs in the playlist. Or to put it another way, the paths in the playlist have to be relative to the location of the playlist. So in practice this means playlists need to go in the root or MUSIC folder. However, you could have a playlist in an artist folder that only has songs from album folders under that artist folder. Or you you could have a playlist in an album folder that only has songs from that album.
However, as tapeworm said, you cannot put the playlist in a separate branch from the songs in the playlist. If all the songs in the playlist are under the MUSIC folder, you can’t put the playlist in the PLAYLISTS folder. The Fuze will expect the songs to be located somewhere under the PLAYLIST folder and it obviously won’t find them.
So basically, just for sanity, always put your playlists in the MUSIC folder, and make sure the paths in the playlists are relative to the MUSIC folder. Then your playlists will always work.