Installed 2.1 without a hitch. Didn't see this "genius" option in the playlist section UNTIL I dragged it from the iTunes playlist section to the iTouch icon. After that, all "genius" playlist features (on the phone itself) are accessible. However.... here's what I'm noticing; If you go into other apps, and just generally fish around for a while, the "genius" playlists you've created via the "genius" function seem to disappear. The feature is unharmed, but the iTouch seems to forget the created "genius" lists. Not a big, big deal, but why? Please test this out and see if you get the same results. Then, post impressions here.