What a mess that is. Something that should be so simple is a right pain to do.
It turns out if you want to do playlists then on Windows 8 launch Windows Media Player, all the other ways end up with missing songs and lists and wrong song orders etc.
Fingers crossed that someone at MS tries to use playlists and actually buys music from places other than Xbox music and hopefully something will get done on the next release.
Even creating playlists on the phone it’s self is overly complicated involving stopping music playing completely before adding songs to now playing and then before the first song finishes attempt to save the current list as a playlist.
Apologies, twitter didn’t have enough characters