sorry for the delay (i've been out for some time)
ok, well first, i have no idea why d&d isn't working. all tests i've performed with d&d have worked without incident (with exception of nero).
are you d&d to your sd card's "drive" in explorer?
and as far as the 'eliminating' thing, this is just it's way of letting you know that the particular file is being filtered out from the options you've chosen. i could come up with some sort of list saving feature (this would cut time dramatically from having to rescan things) if you want to create a list (for example) of all your 'rock' mp3's, etc. the only way for this to not 'eliminate' any files (songs) would be to not have any filters set at all. then it would just accept anything (or at least, that's how it should behave).
if you want to know how this thing works, tho, it basically does this:
1) scan's dir for files
2) saves all files to memory in a list
3) when creating a list it uses this list to create your playlist based on rules. the originally scanned list is unnaffected by 'eliminated' items and always remains intact until you shut the program down. in other words, these items are never taken out of the original list.
let me know if this helps