Yeah I think you're right because I read this last night:

"I had my databases and stuff somehow corrupted and all you need to do to get them back is delete the files /empeg/var/playlists, /empeg/var/tags, and /empeg/var/database and then re-sync. All those files will be rebuilt and it should have gotten you back your original playlists." -Yn0t_

taken from here:http://empeg.comms.net/php/showthreaded.php?Cat=&Board=empeg_general&Number=59084&Search=true&Forum=empeg_general&Words=%2Fempeg%2Fvar&Match=And&Searchpage=0&Limit=25&Old=allposts&Main=59058

I tried to delete those earlier but Empeg couldn't find them. Documented here: http://empeg.comms.net/php/showflat.php?Cat=&Board=empeg_general&Number=86748&page=0&view=collapsed&sb=5&o=0&fpart=