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http://bugs.kde.org/show_bug.cgi?id=66554     
wheeler@kde.org changed:

           What    |Removed                     |Added
----------------------------------------------------------------------------
             Status|UNCONFIRMED                 |RESOLVED
         Resolution|                            |FIXED



------- Additional Comments From wheeler@kde.org  2003-12-31 23:07 -------
Uhm, you just didn't look in the right place.  ;-)

Use the right mouse button over the playlist list and select "tree view mode" -- you don't have to create the lists manually...