heh, hate to answer my own question, but it doesn't seem to matter. Took 2 thumbdrives, one setup as above and the other with the songs put on it with no folders/subfolders, and you could still "search" by artist/album/song on both. It must read the tags and seems to pick up songs in the main directory or even 2 directories deep. My salesman liked it since he never got to try it out and got to see how the thumbdrive works, nice stuff. Not only is it an awesome ride, with its technology it's a geek's wet dream.
James 1:25 Ordered from Faulkner Chevy #NKCF02 1100 5/8/9 2000, 3300 7/16/9 TPW 7/20,GOT MY (low) VIN! 4000 7/24/9 ,Picked up 8/7/9!!! Signed Litho #45. Car signed by FBodfather 2011. Service: Jennings Chevy in PA. We don't "drift", kiddies... we POWER SLIDE! MOTM/COTM Sept 2012 Pro Patria Vigilans. Click the pic..