Playlists in Mplayer CE?

How should one go about creating playlists for mplayer CE? is it xspf or M3u or some other playlist file? and how would I make it play off a USB drive? (I want to be able to make a Christmas Playlist)

I believe you can use .pls or .m3u or .asx

Without being an expert on playlists, an m3u file is very easy to produce. Lets say you have a couple of Christmas MP3s on your ntfs-USB-drive, an example m3u file could look like this:

#EXTM3U
ntfs_usb:/Christmas_Songs/Mariah.Carey-All.I.Want.For.Christmas.Is.You.mp3
ntfs_usb:/Christmas_Songs/Wham!-Last.Christmas.mp3
ntfs_usb:/Christmas_Songs/Jose.Feliciano-Feliz.Navidad.mp3

Hope that helped!

How would a FAT32 drive work aswell?