Well the road disabling and stuff only works for freeride, first of all. Secondly, most of that stuff only takes place in the song after it's enabled. So if you disable/enable the road during a song, for instance, it will only take effect in the next song.
It seems like a lot of the time it will actually connect even though it still says its disconnected. If you have Audiosurf and ASPlayer open and it still says 'Disconnected', try clicking one of the options like 'Run In Background' (that one is pretty important btw) and see if it quickly switches to audiosurf and back.
If when you select options, it switches to audiosurf and back, it means it's connected, it just isnt displaying it. (confusing, sorry)
Anyway I'll keep working on making this app work better. As far as the playlist goes, it should let you select a number of types of files, but it will currently only display the id3 tags for mp3's.
Let me know what file-types it doesn't show, because i'll have to add those to a list of audio files to display.
I haven't actually seen that error it gives when a folder has mp3's and other filetypes. I'll take a peek into what it could be.
Now that my quick sideproject MsnSurf is pretty much done, I'm gonna go back and fix up all the stuff in here. It could be a pretty nice app, but it kinda sucks atm heh