I have found a software solution to loading my itunes playlist and music on a USB drive that works quite effectively on MFT.
If you have a Mac, I found an application in the Mac App Store called Playlist Export.
It pulls up your current iTunes play list, you select the playlist you want to export, you select the external drive you want to use, you select the playlist type (M3U and WPL works for me on the MFT) and then select if and how you want the files to export to the USB drive. I have only gotten the "Copy Music" option to work. this options does not put the files into folders.
I use a 16Gig finger nail size USB flash drive and it works great. (still can't believe you can fit 16Gig into something that small)
The only issue I have really found, and it is not really a big deal, if you browse by file name instead of playlist, it shows all the ._Name invisible files that Mac OS X creates. You can either simply choose to not browse the files that way (use the music meta data option instead) or you can just plug the drive into a PC and delete these hidden files.
