Here's a new build that fixes the 2 reproducible issues that you've reported. MM should now be compatible with all iPods and iPhones, including the iPhone 3G and iPod Touch 2.x. Please share your thoughts and let us know if you see any regressions.
Thx.
What's new?
4886 Fixed missing artwork on iPod Touch 2.0
4878 Fixed playlists don't disappear immediately from iPods/iPhone after deletion