After you pointed it out, user needs, I glanced through:
HKEY_CURRENT_USER\Software\Microsoft\MediaPlayer\P references
I think I gotta spend more time there in registry to hunt down where the folders are stored.
Serious bugs/issues MS has to fix in WMP11:
Artwork doesn't save properly
http://wmwiki.com/mcored...-save-dodgy.wmv
Replaces custom Folder.jpg
http://wmwiki.com/mcored...-aggressive.wmv
"Rearrange music in rip music folder" in WMP11 vs "Keep iTunes music folder organized"
http://wmwiki.com/mcored...brary-buggy.avi
http://wmwiki.com/mcored...ibrary-best.avi
Edit: URL Update.