I downgraded to 1.03 and selected a playlist so I no longer had an empty playlist. I then upgraded to 2.0beta3 again and the problem was resolved.

It appears that my player dislikes empty playlists, even when notify and timecodes are not enabled...

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Unit serial number 47 (was 330 in the queue)...
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Remind me to change my signature to something more interesting someday