I didn't realize that your version of iTunes was that old; it predates the 1-2-3 icon/playlist.
Why aren't you at least up to
iTunes 11.4 for OS X 10.6? (You
may even be able to run a later version, but iTunes specs have been inconclusive lately, so go by whatever the App Store tells you.)
Before getting involved in the abnormal behavior you're experiencing, I suggest that you update and see what happens..
