Playlist displayed with folders

Is there a way to have the playlist sort by alphabetical folders?

Not sure I fully understand. You can right-click on a playlist / folder and click Properties. On the Properties dialog, you will see the Sort By combo box and you can choose various fields to sort by.

Sorry,

I guess I was not very clear. Let me try again.

I want to have a ["G" Rated Playlist]. Under this playlist I want to have folders like, "0-9", "A", "B"... "Z".
Ideally having an active list would be the best way to accomplish this. (Group by first letter separates numbers and special characters.) An alternate approach would be to have the individual smart lists under a playlist for each letter in the alphabet. (Lots of work.) The problem with this is grouping the movies that start with numbers. I can only add so many "Starts with" lines before it pushes the buttons to low on the screen to click. I thought at one time a discussion had been suggested that we could use "regex" queries like "Starts with ([0-9])" vs. "Starts with 0"...

Thanks for the further explanation. An active playlist using a keyword hierarchy like:

[+] Content Rating

[+] Group By First Letter

should do the job for you - except that numbers and non-English characters are listed separately.