i found the FREE "rings extended"- amazing what exists for free.
anyway it allows you to set any of your songs to any notification, including the alarm. So i have wake to music now, but i have to pick a fresh song all the time. Still better than the BUZZ BUZZ BUZZ of my alarm clock or the default tones on the droid.
But still wish there was a way to do playlists so that everyday It just picked a fresh song for me.