Create Playlist on WD TV Live Hub
In the root folder of the 'WD TV Live Hub', create a folder called 'Playlists' do not include quote marks.
Open Playlist Creator, (Which is available as a free download, just do a search for it) my version is 3.6.2, click on 'Playlist details' under the settings menu. Make sure that Relative is selected under 'Saving Playlist Entries'. Click OK.
Add music tracks to your list by using Drag & Drop or use the icons on the right hand side. Make sure you use tracks that are stored on your 'WD TV Live' hard drive.
Before clicking on 'Create Playlist' make sure that the 'Save Location' is pointing to the 'Playlists' folder you created earlier on your 'WD TV Live Hub', and that under 'name and type' you have given your playlist a meaningful name, I use the .m3u extension.
Switch on ‘WD TV Live Hub’ and press the Home button. Scroll to ‘Setup’ & press OK. Select ‘System’ & press OK. Select ‘Media Library’ & press OK. Select ‘Clear Media Library’ & press OK. You are asked if you want to clear ‘WD TV’s Media Library’, select yes & press OK. Message to say clearing and rebuilding library is shown.
WD light on front of unit flashes to indicate rebuilding of library. When flashing stops your new playlist is in the library.
If you open the playlist that you just created in ‘Notepad’ or any other text editor you will find that the line that points to your music starts with ..\, this tells the ‘WD TV Live hub to look in the root directory, the next bit of that line tells it what folder to look in, then the track name.
To Display Playlists in WD TV Live Hub
I leave my hub in standby mode all the time, so hit the On button on the remote control and then press the Home button and scroll to Music, press OK. Press red button marked with the letter ‘A’ and the filter menu opens, press right arrow on remote then scroll down until Playlist is selected, press OK. A green tick appears, press OK again and Playlists will be shown. Select desired Playlist and press start.