Index: apps/playlist.c
===================================================================
--- apps/playlist.c	(revision 17284)
+++ apps/playlist.c	(working copy)
@@ -3612,3 +3612,13 @@
 
     return result;
 }
+
+/*
+ * Check if a folder exists, if not try to create it
+ * return folder or "/" if it's not possible to create the folder
+ */
+const char* playlist_check_mkdir(const char* dirname)
+{
+    return dir_exists(dirname) ? 
+      dirname : mkdir(dirname)==0 ? dirname : "/";
+}
Index: apps/playlist_catalog.c
===================================================================
--- apps/playlist_catalog.c	(revision 17284)
+++ apps/playlist_catalog.c	(working copy)
@@ -54,56 +54,18 @@
 static char most_recent_playlist[MAX_PATH];
 
 /* directory where our playlists our stored */
-static char playlist_dir[MAX_PATH];
-static int  playlist_dir_length;
-static bool playlist_dir_exists = false;
+static char* playlist_dir;
 
 /* Retrieve playlist directory from config file and verify it exists */
-static int initialize_catalog(void)
+static void initialize_catalog(void)
 {
     static bool initialized = false;
-
     if (!initialized)
     {
-        bool default_dir = true;
-
-        /* directory config is of the format: "dir: /path/to/dir" */
-        if (global_settings.playlist_catalog_dir[0])
-        {
-            strcpy(playlist_dir, global_settings.playlist_catalog_dir);
-            default_dir = false;
-        }
-
-        /* fall back to default directory if no or invalid config */
-        if (default_dir)
-            strncpy(playlist_dir, PLAYLIST_CATALOG_DEFAULT_DIR,
-                sizeof(playlist_dir));
-
-        playlist_dir_length = strlen(playlist_dir);
-
-        if (dir_exists(playlist_dir))
-        {
-            playlist_dir_exists = true;
-            memset(most_recent_playlist, 0, sizeof(most_recent_playlist));
-            initialized = true;
-        }
+        playlist_dir = playlist_check_mkdir(global_settings.playlist_catalog_dir);
+        memset(most_recent_playlist, 0, sizeof(most_recent_playlist));
+        initialized = true;
     }
-
-    if (!playlist_dir_exists)
-    {
-        if (mkdir(playlist_dir) < 0) {
-            gui_syncsplash(HZ*2, str(LANG_CATALOG_NO_DIRECTORY),
-                playlist_dir);
-            return -1;
-        }
-        else {
-            playlist_dir_exists = true;
-            memset(most_recent_playlist, 0, sizeof(most_recent_playlist));
-            initialized = true;
-        }
-    }
-
-    return 0;
 }
 /* Use the filetree functions to retrieve the list of playlists in the
    directory */
@@ -410,21 +372,15 @@
 
 bool catalog_view_playlists(void)
 {
-    if (initialize_catalog() == -1)
-        return false;
-
-    if (display_playlists(NULL, true) == -1)
-        return false;
-
-    return true;
+    initialize_catalog();
+    return display_playlists(NULL, true) != -1;
 }
 
 bool catalog_add_to_a_playlist(char* sel, int sel_attr, bool new_playlist)
 {
     char playlist[MAX_PATH];
     
-    if (initialize_catalog() == -1)
-        return false;
+    initialize_catalog();
 
     if (new_playlist)
     {
@@ -448,7 +404,7 @@
 
     if (add_to_playlist(playlist, sel, sel_attr) == 0)
     {
-        strncpy(most_recent_playlist, playlist+playlist_dir_length+1,
+        strncpy(most_recent_playlist, playlist+strlen(playlist_dir)+1,
             sizeof(most_recent_playlist));
         return true;
     }
Index: apps/playlist.h
===================================================================
--- apps/playlist.h	(revision 17284)
+++ apps/playlist.h	(working copy)
@@ -30,7 +30,7 @@
 #define PLAYLIST_ATTR_SKIPPED   0x04
 #define PLAYLIST_MAX_CACHE      16
 
-#define DEFAULT_DYNAMIC_PLAYLIST_NAME "/dynamic.m3u8"
+#define DEFAULT_DYNAMIC_PLAYLIST_NAME "dynamic.m3u8"
 
 enum playlist_command {
     PLAYLIST_COMMAND_PLAYLIST,
@@ -127,6 +127,7 @@
 int playlist_update_resume_info(const struct mp3entry* id3);
 int playlist_get_display_index(void);
 int playlist_amount(void);
+const char* playlist_check_mkdir(const char*);
 
 /* Exported functions for all playlists.  Pass NULL for playlist_info
    structure to work with current playlist. */
Index: apps/menus/playlist_menu.c
===================================================================
--- apps/menus/playlist_menu.c	(revision 17284)
+++ apps/menus/playlist_menu.c	(working copy)
@@ -22,6 +22,7 @@
 #include <stddef.h>
 #include <limits.h>
 #include <string.h>
+#include <stdio.h>
 #include "config.h"
 #include "lang.h"
 #include "action.h"
@@ -50,7 +51,11 @@
         strcat(temp, "8");
     
     if (len <= 5 || strcasecmp(&temp[len-5], ".m3u8"))
-        strcpy(temp, DEFAULT_DYNAMIC_PLAYLIST_NAME);
+    {
+        snprintf(temp, MAX_PATH, "%s/%s",
+          playlist_check_mkdir(global_settings.playlist_catalog_dir),
+          DEFAULT_DYNAMIC_PLAYLIST_NAME);  
+    }
 
     if (!kbd_input(temp, sizeof(temp)))
     {