Although we normally create playlists on the computer in iTunes, you do have the ability to create one custom playlist from right within your iPod. It's called "On-The-Go" playlist (because you're creating it away from your computer), and here's how to create one: Find a song that you want in your On-The-Go playlist, and then click-and-hold the center Select button until you see the song title blink twice (that's the iPod telling you it's been added to your On-The-Go playlist). Keep adding songs until you're ready to start hearing your new playlist. To find your On-The-Go playlist, go to the Main Menu, scroll down to Music, choose Playlist, press the center Select button, and you'll find it at the bottom of the Playlists menu. Press the center Select button, scroll down to a song, and press the Play/Pause button. That's it—you're listening to your On-The-Go playlist. When you sync your iPod with iTunes, your On-The-Go playlist will appear in iTunes, where you can tweak it if you like.

From Scott Kelby’s “Mac OS X Tiger Killer Tips,” packed with cool inside secrets, slick workarounds, undocumented shortcuts, and sneaky tricks to help you use Mac OS X.