Cannot create playlist on old ipod

Hi spojaw,

Welcome to the Apple Community.

To go to the Home screen, press the Home button . 

To Open the Music app: Tap it.

If you can't find an app: use Spotlight to find and open it.

NB: Spotlight also searches in the Music app:

ie: for Names of songs, artists, and albums, and the titles of podcasts and videos

iPod Manual for 6.1

https://manuals.info.apple.com/MANUALS/1000/MA1657/en_US/ipod_touch_ios6_user_guide.pdf

says:

"Create a playlist: 

View Playlists,

tap Add Playlist near the top of the list, then enter a title.

Tap to add songs and videos,

then tap Done.

Edit a playlist: Select the playlist to edit, then tap Edit.

• • Add more songs: Tap +.
  • Delete a song: Tap round red - icon. Deleting a song from a playlist doesn’t delete it from iPod touch.
  • Change the song order: Drag three horizontal bars icon.
  • New and changed playlists are copied to your iTunes library the next time you sync iPod touch with your computer, or via iCloud if you’ve subscribed to iTunes Match.
  • Clear or delete a playlist: Select the playlist, then tap Clear or Delete. Delete a song from iPod touch: In Songs, swipe the song, then tap Delete.
  • The song is deleted from iPod touch, but not from your iTunes library on your Mac or PC, or from iCloud".

All the best :-)