The following is a suggestion on how to create a file structure. You can alternatively create an ibay or user for these. In christian's config for example, he has an ibay with all of his media which points SqueezeCenter and Jinzora to. However he maintains Squeezebox servers's playlists per william_syd's suggestion below.
{{Note box|If you use an alternate directory entry, you will need to ensure squeezebox server has permissions for that directory. For example by including it in the appropriate group assigned to an ibay.}}