Finally found out best way to sync Playlists onto Samsung Galaxy S2.
Find out where your playlists are stored on your PC by right clicking the name of the playlist and clicking "open file location". Copy the playlist file (it will have a .wpl extension) to the playlist file on your phone using widows explorer. THEN in Windows Media Player, go to Sync, drag the playlist over to the sync bar and sync to phone. This copies the actual music. May have to unmount SD card and remount in your phone for it to recognize and play through "Music Player". May have to turn phone off and on again. Give it 10 minutes for the playlists to populate.