I did figure out that the folders with the songs are grouped according to the folder they are in - e.g. while the radio will not display the Artist folder, the Album folders for a given artist will be grouped together at least.
Clearly a USB drive is no substitute for an iPod as far as organizing large music collections. While I will still use the iPod Classic on long trips, I was trying to get a USB flash drive set up to leave in the car for shorter trips around town.
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