After much googling i found the answer!
I solved the problem by making playlists from the squeezebox itself. After much searching i got the following instructions on http://www.stevehoffman.tv/for…..07641.html whom i acknowledge with many thanks. I have taken the liberty of pasting below their instructions to help anyone else looking for it. I hope thats alright Andrew- please feel free to delete it if u think this in no appropriate.
I'm assuming you are looking at the Squeezebox Web UI in a browser. If you choose an album or a track to play, it shows up in a list on the right. You can add and delete tracks from this list. For example, if you hold the mouse over a track, you'll see an X button which deletes it. And if you search for another track, and click the + button, it gets added to the list. You can also reorder tracks by dragging them up and down.
If you hadn't guessed by now, this is in fact a playlist. At bottom right is a save icon. Click this, and the list moves to the left panel with a default name of untitled. You can amend the name and then click Save.
Now the playlist appears by that name in your playlist collection
So how do you amend a playlist? If you go to Home – my music – playlists, you can open your playlists, amend them and re-save.