Not sure if this is helpful for what you desire, however, check the advice here
http://www.gnutellaforums.com/tips-t...tml#post344530
Sounds to me like a permissions issue. Check the folder you are attempting to save your playlists to. Check the user permissions for it.
Oh come to think of it .. with LW 4, I think you may need to choose Save as .. not continually save the same playlist to itself. So try save as .. with a slightly different name .. creating a new playlist, not resaving the old one. Try that see what happens.