Hmm... haven't tried... you are talking about m3u playlists right? I put a bunch of music on a flash drive and plugged it into the USB port and it does a pretty good job of showing folder structure. It has a root button and a folder up button, etc... I put the music in their own folder per album and it works really well... It also remembers where you left off when the car is turned off even if you unplug the flash drive...
