I have mine setup like this:

"All Artists" (Contains everything)
..."ABC"
......Artists that start with A, B, or C
.........Albums
............Tracks
..."DEF"
..."GHI"
...(etc.)
"Electronic"
...All artists that fit into this genera
......Albums
.........Tracks
Genera 2
Genera 3
etc. etc.

(Sorry about the dots... Spaces and tabs didn't seem to work cool. Hope it's still understandable.)

Remember, the beauty of the empeg, is that you can tweak it however you want. And remember, the same track can be in several different playlists simultaneously, but there's only one copy of the track saved on the unit.

I highly recommend the "ABC", "DEF" thing if you have a big collection, because that way you don't have to scroll through as many artists to get to the one you want. Heck, for some people it doesn't hurt to have a separate playlist for each letter of the Alphabet.