A playlist is a file stored on the device which includes a sequential list of songs. All playlists native to the iPod are supported. The radio also supports the following playlist types for other USB-connected devices.

Windows Media Player Advanced Stream Redirector format (*.asx)
Windows Media Player Playlist (*.wpl)
M3U Moving Pictures Expert Group Audio Layer 3 Uniform Resource Locator (*.m3u)
PLS file (*.pls)
iTunes XML (*.xml )
RealPlayer Metadata Package (*.rmp)

NOTE

M3U, PLS and WPL playlists only allow relative pathnames to files. Absolute pathnames are not supported.
All XML files on USB mass storage media will be displayed, even if the files are not actually XML-formatted playlists.

Select Home > Media > Find.
Select Playlist.
Select item from list.
Select song from the playlist. To play the entire playlist, select the first song.