Playlist folders are supported on the new Nano! (and Classic)

Hi folks,
You may have noticed that in iTunes 7.4, playlist folders now show up when selecting which playlists to sync to your iPod. Originally, people thought this was just cosmetic on the iTunes side.
I am here to tell you now that it is not just cosmetic. The same folders that you create on iTunes will be ALSO shown on your new Nano (and Classic I assume). Previously, the navigation was:
Playlists->Playlist
Now it is:
Playlists->Folder->Playlist
Which also means you can hit Play on the Folder and it will play every playlist within that folder!

Anyone able to figure out how the ipod sorts playlists within folders?
On my itunes I have a folder of playlists for audiobooks. Within that, there's another folder for each nano and then playlists for the books on that nano. In ITunes, they appear in alphabetical order by playlist name, but on the Nano, it seems random: Here's a sample:
Beaton
Bond
Brett
Fletcher
Lippman
Robb
Stout
Crais?
Wren
Truman?
Any suggestions would be appreciated.

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