Glad it worked out. About the playlist editor - I did not read instructions so it took a bit of playing around - that's why I bring up 2 points.
Remember
1. In order to import whole directories (and subdirectories)
go to Edit and then Import (in the playlist editor).
And of course save the playlist.
2. Once you create and save the playlist you need to Update Library (in your WMP).
After posting the above
:-)
Now I see there is a new version - 1.3 that has a button in toolbar.
:-)