That is the SAME problem I have. The music and artwork get synced, but not the playlists.
I even tried a 2 MB card that I use in my other Sansa player that I know has working playlists on it, and the Clip Zip doesn’t find them.
I am getting VERY frustrated. I have a very large music collection, and it is difficult to find specific things so I like to make long playlists that will run for 4 or 5 hours.