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i know before i got my ipod i used to use the finder to do this and had complete control of what ever i wanted but it might have something to do with the "keep library organized pref" in itunes. i never got what that ment.

It does appear that this is one feature Apple didn't include! However, you can just use the finder to burn your multiple playlists. Create the playlists you want on your CD in iTunes as normal. Then create a folder for each playlist in your home directory, open each play list in iTunes, pick "Select All" from the "Edit" menu, drag the selected songs into the associated folder, multi-select all your folders and drag them on top of your CD icon.  Pick "Burn..." from the dialog box. That should do it.  Not so intuitive, but, it works.

But that would burn it as a macintosh volume which if I recall would NOT be recognized by a mp3 deck.  If I want something so organized as what you are saying, I just use Toast to do it, but then you gotta have toast...

True but itunes also burns MP3 discs as macintosh volumes (not as ISO as they claim on their homepage - just check the disc in the finder after burning it!!), that's why they never work in my car stereo!

If you have Toast, I would strongly recommend this to burn your MP3 discs! You can burn folders that you should be able to skip with your MP3 player from album to album (this is also not possible with itunes - you can only sort by album but you would still have to skip through several hundrets of songs if you want to get to the last album...)!

iTunes burns mp3 CDs as macintosh volumes? I've never had a problem playing one in my DVD player, and I'd be surprised if it supported HFS.

Well, if I put an itunes MP3 disc in my CD-Rom drive and make a "get info" then it is shown as a HFS disc......maybe there is an error!?!
However, my car MP3 player does not play them but plays Toast discs just fine......just my experience!

It's actually very simple if you want each "folder" to be an "album" just make sure you are sorting by artist when you burn you CD as MP3.

At least this had worked for me in the past. And Present.

ID3 might be important too, but I doubt it, if you have the manual it might tell you what version to use.

iTunes burns mp3 CDs as macintosh volumes? I've never had a problem playing one in my DVD player, and I'd be surprised if it supported HFS.

Well, if I put an itunes MP3 disc in my CD-Rom drive and make a "get info" then it is shown as a HFS disc......maybe there is an error!?!
However, my car MP3 player does not play them but plays Toast discs just fine......just my experience!

I always figured it did one of those hybrid dealies. I think all that does is expose my lack of knowledge in this arena.