The list you were seeing in iTunes is a playlist that comes from LW. But this is purely a playlist which is a reference to the songs. See the Sticky at the top of this section about iPod & iTunes. All your answers are there. Control & O is the best way to add them.

For the LW to show up in iTunes you need to have your iTunes sharing in LW options checked. ie: Tools>Options>iTunes ... & press apply button.