The way I did it, is divide by Genre in the root "directory", so when I go to playlists, I can already choose what kind of music I want to listen to.
Below these levels, I have individual songs (in case I don't want a whole album of that artist), and full CD's. If I have more than 1 CD by an artist, I have that artists name, so this is how my listing might look:
[empeg-car]
-Chillin'
-Pop
-Ska
|--> The Hippos - Forget the World (Only one album by this artist, its off the root of Ska)
|--> Less Than Jake
| |--> Losing Streak (multiple albums, I put it under the artist name)
| |--> Hello Rockview (again, another album)
| |--> The Reflex.mp3 (individual songs that are not on an album)
| ...etc
|--> Buck-O-Nine - Hold Back The Rain.mp3 (individual ska song, doesnt fit in another playlist)
and so on... does this make any sense? :) This way, I can easily get to an album by a particular artist, I can randomize by genre, artist, album, or so on (and I don't have to rely on the search screens, which sometimes put the songs in odd order)
(O|||||O)
Q: 0596 S/N: 00246 6GB Blue