Updated itunes, ipod and now i have playlist issues.

just upgraded to OS X (5.8). then upgraded ipod to os 4.2. then updated itunes to 10. now i am having interesting issues when i plug the ipod into the computer. of course, everything on the ipod music was wiped out. so i had to sync back all the music. but now i cannot make any playlists when i plug in the ipod. i can only make playlists in itunes on the computer. this is not right. i made several playlists on my ipod before. when i hit the file drop down menu, none of the playlist options are highlighted when i have the ipod selected. what has happened or what do i need to do???

Try:
- iOS: Not responding or does not turn on
- If not successful and you can't fully turn the iPod fully off, let the battery fully drain. After charging for an least an hour try the above again.
- If still not successful that indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.

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