Ok so I used the "Add iTunes Library" option and I do see the iTunes playlists presented as folders on the server.
I read in other posts that the music will not appear in these but in the "All Music Files" folder.
The music was actually on my wife's laptop so I shared the iTunes folder and music files folder so that Mezzmo (installed on WHS 2011) can see them all.

Here is the stupid part of the question.
So how do you actually play the imported iTunes playlists?
I access Mezzmo and see the iTunes playlists on the TV, but just as they show on the server they are empty folders with nothing to select.

Thx

Pat