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TO CREATE A PLAYLIST, press Ctrl+N (⌘-N) in iTunes. You can also choose File→New Playlist or click the button at the bottom-left corner of the iTunes window.
All freshly minted playlists start out coldly named “untitled playlist.” Fortunately, iTunes highlights this generic moniker so it’s ready for editing—just type in a better name: “Cardio Workout,” “Hits of the Highland Lute,” or whatever you want to call it. As you add playlists, iTunes alphabetizes them in the Playlists area of the Source list.
Once you create and name a spanking-new playlist, you’re ready to add songs or videos. You can do so several ways, so choose the one you like best.
If this is your first playlist, open the playlist in its own window so it’s easy to see what’s going on. To make that happen, double-click the name of the playlist in the Source panel. You end up with your full library in one window and your empty playlist in the other. (If this is your first playlist, iTunes pops up an intro screen; ignore it and go to step 2.)