QUOTE(greynol @ Dec 27 2007, 23:40)

change
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\
to
HKEY_CLASSES_ROOT\
merge and reboot, or you might just need to reboot.
Excellent job, ~*McoreD*~.

My machine must be very special. It does not work either
This is what I did and rebooted then:
CODE
Windows Registry Editor Version 5.00
[HKEY_CLASSES_ROOT\Folder\shell\Create M3U playlist\command]
@="cmd.exe /c dir /o/b \"%1\\*.mp3\" > \"%1\\playlist.m3u\""
...............:::::::::::::::::::::::......................
EDIT:
I wonder if somebody can try this REG trick and tell us if it is working....