Playlists in the App will not play

This is a followup to my posting.  I went back and played with my ipad and flash drive more.  Even though my playlists and songs reside on the ipad, the playlists will only play if the drive is plugged in.  This leads me to believe the playlist softwatre is on the drive and not in the app.  Therefore, I have two requests:

1 - could the software that runs the playlists be included in the app?  If not, could it be copied/installed from the drive to the ipad?

2 - could the generation of thumbnails be made configurable so that it does not run continually with no results?

Thanks