Have you read
this FAQ? Specifically:
By default, changing the "position" order of songs and playlists will alter their playback order, but not their alphabetical position in the player's "Playlists" menu. If you wish for the player's menu screen to show the playlists in position-order instead of alphabetically, there is an option in the "Configure Player" screen in emplode, on the Advanced tab. Turn off the "Sort playlist menu by title" option and synch. Use caution, however, because this makes it hard to use the numeric shortcut keys on the remote control when navigating the playlist menus.
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Bitt Faulk