Playlists?

see responses below:

2.  Navigate to Internal Memory directory via Windows Explorer or My Computer, etc. 

Which internal memory? 

>>- (internal memory on the Clip device)

3.  Right click on Playlist and select create playlist.  If it gives you a message about no media, then go to the Albums or Audiobook directory and select an Album and do the same thing.   Rename as appropriate.   i.e. Country.pla 

No playlist visible when I open the clip memory?           

>> - (On the clip device(via explorer) you will have to create a playlist in a directory with music in it. then move it to the internal memory directory on the clip device.  Once it is there, you should be able to see it when the Clip refreshes and then via Rhapsody, you should be able to move music to that playlist, or clean out the songs from the playlist you just created.