The experience is fairly similar, but not identical, mainly due to the display difference and some browse/sort abilities not supported due to limited processing power. Your playlists SHOULD be recognized - I've never seen that happen before where it didn't read them. There's always the chance the firmware was seriously out of date (always carry around a flash drive with firmware!)
The cue jump was likely that you hadn't enabled auto-cue on track load and it was going to where you had previously set it.