Hey wow! Thanks a ton for the update!! This did fix one of the problems and allowed me to figure out what was going on.
Problem 1: Rar compression. Even though I was using non-solid compression, it wanted to read the entire file before it could get to the end of the play list.
Solution: Use 7z non-solid compression.
Problem 2: Xmplay still wants to read all the titles to see if there are any dead ones.

This can be stopped thanks to the .ini command nocheckdead, but only at startup.
Current solution: load play list, shutdown program, reload program, and enjoy!
-Is there a simple way to make it stop scanning for dead play list entries? (I bet you really hate me as of now; you don't have to put time into what I ask for as I am just curious).
I really appreciate you working on this issue. I downloaded the entire mod archive as of 2007. I'm currently finding a way to make this huge mass of music playable (I know, I'm insane). I've been working on decompressing, and re-compressing all this music to fit on a set of 8 DVDs.