Give that man a cigar. Yeah, the "Unattached Items" playlist is still in the root playlist, which causes a discontinuity in the numbering (e.g. on my player, it's actually number 3 or 4).

This is the reason that the move up/down buttons are disabled in the root playlist -- it used to crash if you pushed the playlist too far. The quick fix is to disable the buttons. When I figure out a sane fix, I'll reenable them.