I recently updated to 4.0 and my playlists disappeared

I had 4 playlists 80's music, 90's, new rock etc and after installing the updated they are now gone. How do I create a new playlist now? I have spent hours on iTunes trying to figure it out, even drop and dragging music on already listed playlist and it won't allow it. I created my last playlists by renaming the ones that were there already and drop and drag. Why is this not working now? Anyone give me step by step to creating new playlists or direct me to were it is listed. Thanks so much in advance.

Thank you. Someone contacted me and made me aware you can make a playlist directly on the iPod touch, which was a feature I wish was there from the get go. I was so use to do everything form iTunes, I am happy this is far more easier to do. I already got my 4 playlist back and creating more. Thanks for your help.

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