Quote:
does this mean that every artist is a playlist, or every album?

A playlist can be any group of songs you like.

In your example, a playlist is every album because you had folders for every album. But it could be a random collection of songs, or something specific. Depends on how you set up the folders.

An example the old Empeg web site used to give was something along the lines of, "you could have it be indie rock from UK bands between 1980 and 1995, anything is possible".

Here's a FAQ entry giving suggestions as to how to organize things.
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Tony Fabris