On my old iPod (and on my touch), I never ranked the songs, and so for the alarm, I would rank the song that I wanted to wake to at 5 stars and set the alarm to play the "My top rated" playlist. My iPod was always docked into a speaker/charging system at night, so in the morning I would always wake up to that song. I just wish that this ability was available on the touch, it is one of the things that I miss most from my old iPod and hope that is fixed/added in the next update.