Three customer have reported this error http://jthink.net:8081/browse/JAIKOZ-817 , as of yet I am unable to replicate this and do not know how widespread the problem is, but in the meantime here is a possible workaround that only has to be done once.
Start iTunes
If Playlist folder called Jaikoz does not already in iTunes create it
Then create a playlist within that folder
Then try Jaikoz again, does it now work happily creating a playlist each time you save some changes