SQL Playlist problem?

Run LMS on my computer with music on an external hd. When I configure a playlist this is what I get. Have no idea what it means or what to do to correct.

"No custom dir configured"

Set in sql plugin directory

C:\Documents and Settings\Linda\My Documents\My Music\Playlists

Nothing entered in template directory. The external hd drive is drive L. What how and where do I need to configure.

Suggestions appreciated.

Thanks
Steve