I've figured the whole thing out. 1) Create a playlist on the R3 (don't create an empty one, put in a couple of songs in there just in case) 2) Tap the down arrow on the right hand side of the new playlist you created and then select "Save playlist" 3) A pop up should come up asking you what format to save the playlist as (it should say .m3u), tap on .m3u and a new pop up will say "playlist saved" 4) now mount the R3 on your PC, the playlist_data folder should now be created at the root level by the system, now you can copy m3u playlist into the folder and the R3 should pick them up when you tap the "Load playlist" option Manually creating a playlist_data folder DOESN'T work, it seems that only creating a playlist AND saving it on the R3 will trigger a flag in the OS to let it know that the playlist_data folder exists and then can start scanning that folder and import playlists. Also make sure the m3u filepath are using relative filepath. (I can't believe how many reviews - even the reputable ones - never touched upon how terrible the m3u playlist situation was in the firmware. Makes me lose respect and to doubt their testing method now regarding DAP UI).