As far as I know Larry the USB stick won't allow playlists... but people are saying the iPod will. I've been considering getting one and trying it out but man they seem expensive.
Unless someone knows better, I *think* the best we can do with a USB stick is to create our own folders on the stick with categorized music in them. Just create a folder called "60s Rock" and copy your favorite 60's rock songs in there. You could do the same for "70s Rock" and even, God help us, "80s Pop", or whatever else
Then you can use the Honda audio control to do one of several things. You can tell it to play music sequentially or randomly from ALL folders... or you can select just one folder and have it play songs from only this folder. This is kinda the same function as a playlist, no?