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Message:	: : It uses the ID3 tags, and the newest firmware makes this much easier to work with. Playlists are a little more difficult. : : I group my music by using key names in one of the ID3 catagories, and once grouped that way, it will first use track numbers, followed by alpha sorts. : : They espect another firmware update soon which is exciting, as it is becoming quite intuitive. I hope this answers your question!