The on screen display shows the file system, expanding all subfolders. I suggest you make as few subfolders as possible. I put about 30 of my favorite bands on my thumb drive, but each band has many albums, each listed as subfolders. Now I have to scroll through 100 pages to get to the bottom of the list. Limit your folders (playlists) to less than 40 or so, and DO NOT use subfolders.