Eddie,
I just checked on my SX-900, and can readily and easily change the order of records in my Playlist.
On the right hand side of the Playlist, under "Add Record", I have buttons for List and Search, followed by Delete, and Edit.
And then there are 2 arrow buttons, for Up, and Down. Just highlight a record, and move it in any order.
As Fred mentioned, the list is initially showing the records...... "as you added them" to the list.
But it seems very straightforward to rearrange them in any way you'd like. Remember to Save your changes.
I am not using Folders, just files.
Hope that helps, Regards, Jerry