HTC Incredible : Android 2.2 - Playlist Will Appear Alphabetically And Then Disappear

With my old phone, MyTouch, Android 1.6, I would export a playlist from iTunes as an .m3u file, and copy that playlist file over to /sdcard/music/playlists so that it would be on my phone. I manually copy all of the music from the playlists into /sdcard/music so that every song that is in said playlists is in the music directory. The music app would take awhile to update and read everything, but once I gave it some time to work, everything worked wonderfully. That was all I had to do.

With my new phone, Incredible, Android 2.2, when I do the same steps, it doesn't work. I open the music app, go to the playlist option, and it thinks and thinks and thinks. Then each playlist will appear, alphabetically, and then disappear, until there are no playlists at all.

I read some forums online and have tried multiple things, and apparently Android 2.2 reads the SD card looking for music, and when reading a playlist, if it can't find any of the songs in the list, it deletes the playlist. The playlist is not only deleted from the list in the music app, but is completely deleted from the SD card entirely.

Here is my concern... When this playlist is exported, it has the path from C: on my computer, because that is where the music is housed on the computer. Moving it to my phone has never been a problem previously because it ignored the C: path and just found the song, without worrying about the additional directory information. But the newer version of Android isn't doing the same thing, I think it's more picky?

Anywho, I need my playlists! I don't want to use MediaMonkey, and the m3u files have worked fine in the past - quick and easy, without having to use additional programs. I really, really, REALLY don't want to have to go through these playlist files and remove all of the path information because these are huge lists, but I guess I might have to. Do you have any other ideas on what I can do to make this work?

I've tried different directories for the playlists on the phone - but I don't think that's the problem because the phone can SEE the playlists, and then deletes them. I've tried creating a playlist on the phone so that I could see the format of it, but the playlist that I created can't be found on the phone. I don't know how the phone creates them, or where it houses them, as I tried to search for it and was unsuccessful.