There are two ways to create a playlist on an iPod. The first way requires you to use iTunes to create the playlist, while the other way allows you to make a list on the fly, using only your iPod. The on-the-fly method does not allow you as much room to customize the songs on the playlist, but you also do not have to dock and sync to get the playlist on your iPod.
Open iTunes on your desktop computer. Now, click on "File" to open a menu of options. Choose "Add New Playlist" to create an untitled playlist. This will appear at the bottom of your list of playlists.
Type in a name for your playlist. Pick something short yet descriptive for the playlist name, as this will help you organize your music on your iPod.
Open "Music" under the "Library." Drag the titles of songs from the "Library" to the playlist you want to create. Repeat this step until you have added all of the music that you want in the playlist.
Highlight and choose a song title or album title that is currently saved to your iPod.
Push and hold the center button until the title of the song or album begins to flash. Repeat this process until you have a list of songs that you want to hear.
Go to the "Music" menu, pull down the list of available playlists, and then select "On-the-Go." This starts the music playing.
If you did not add songs to the playlist in the order that you want to hear them, you can set the order in which songs are played by dragging song titles around within the playlist. You can use the "Smart Playlist" option to define how frequently you hear specific songs within a playlist and other advanced play back options. You can make changes to an on-the-go playlist by highlighting a song on the list and holding down the center button until the song title flashes. Once you save the on-the-go playlist, you cannot delete or make any further additions to the playlist.
Although you can make changes to a playlist in iTunes with ease, once you save an on-the-go playlist on the iPod, you are stuck with it.