A playlist is a custom list of music tracks that is made up from songs in your music library; you can think of playlists as your own music compilations. You can make as many playlists as you want and give them any name you desire. It is sometimes useful to organize tracks into playlists to suit a particular musical style or mood. This tutorial will show you how to generate a playlist from a selection of songs from the music library folder.
If you haven't got any music in your iTunes library yet then the quickest way is to import your CDs (see the tutorial on CD ripping). The article on the dos and don'ts of CD copying and ripping is also a useful resource to read.
If you need to install iTunes first on your Mac or PC, then the best place to get the latest version is to download it from Apple's web site.