What I did was create a Virtual Device using a base storage path of "D:\Temp" (this is just a dumping ground for me, and I always delete everything when I'm done)
My music path is "Music\$Group($Sort(<Album Artist>),3)\$Sort(<Album Artist>)\<Album>\<Disc-Track#> - <Title>"
The very first transfer worked fine, all folders were created automajically.
I did some tag adjustments to the music files and then moved them to my SD card. This got rid of the "music" and "playlist" folders and I assumed that the next time, MB would just create the folders again if needed, like it always had before.
Obviously, if I manually create the "music" folder first everything goes fine. I just find it odd that MB will create the "playlist" folder if its needed, but not the "music"
Just had a thought, would things work better if I used "D:\Temp\Music" as the storage path and started the music path at $Group…