How do you create one? Is it even possible on the phone? I tried creating in windows media player a *.m3u file but it couldn't be loaded.
To create playlists on the phone, you need a 3rd party music player. Like Amigo (see my signature), or Music Player Remix
Amigo Music Player Tractor - Archive Extractor
Sync Palm Pre with iTunes
ryhor.com - find cool apps for the Treo and Palm