First thing you need to do is disconnect your phone from the computer. Then, you need to import your itunes libary and playlists into DT. That will take a while. But all your itunes playlists should show up in DT. When that happens, you should continue to edit your playlists in itunes, then when you open DT to synch, you will need to update the itunes library. These updates will only take a minute or so.
Once your library and playlists are updated in DT, then you can connect your phone and synch your music to your EVO.
Overall, I really like DT. It will convert all the various formats to a playable format on your phone. This conversion occurs only within DT, so your library is not really changed. But I use Apple Lossless, and when I synch with DT, those lossless files are compressed significantly. I like this on my phone. If you don't like the compression, then you can simply pull Apple Lossless files to your music folder on your phone, and find an app that plays apple lossless.