I finally figured out how to create your own custom playlists right on Droid in music app. I dont want to use any software for this. I dragged all of my iTunes music onto sd card.
All you need to do is open the music app on Droid and either select Albums, Artist or Songs and whatever Album, Artist or Song you want to use on your custom playlist just do a long hold on the item and the pop up will give you the option to "Add to Playlist". Tap on that option and from there you can create a new playlist and name it. Then you just select that playlist for the next item you want to add to it.
On OS 1.5 you did this through the Playlist portion but now it's different but just as easy to do.
All you need to do is open the music app on Droid and either select Albums, Artist or Songs and whatever Album, Artist or Song you want to use on your custom playlist just do a long hold on the item and the pop up will give you the option to "Add to Playlist". Tap on that option and from there you can create a new playlist and name it. Then you just select that playlist for the next item you want to add to it.
On OS 1.5 you did this through the Playlist portion but now it's different but just as easy to do.