On the go playlists on the iPod Touch

I must be stupid, but I can't figure out how to do this. Please help!

If you're using iOS > 4, you can simply push "Add Playlist..." at the top of your playlist list. Otherwise (you're still using iOS < 4), simply press the On-The-Go entry.

That looks like a playlist, but you can't use it while the song is already playing can you? I mean, you can't play a song, then queue up subsequent songs while it's still playing with that?

well you can do that..

once you create a playlist from add new playlist and then you play a song..press the back key and go to top of playlist ......and you have options either to edit clear or delete.....

you can work your way through it...