I don't have that head unit so I can't help but have you tried emailing kenwood support? sometimes (like 1 in 3) they respond with something useful... since it seems to be headunit related
Judb you were correct! Phatnoise responds today:
"Hello Shawn,
Thank you for using the Kenwood Music Keg. The issue you described is due to a limitation of the stereo. There is delay in filling the list because of all the data being sent to/from the head unit and the Music Keg, but all names eventually will be seen.
The issue that you are having is due to the head unit's capability to save disc names. Video head units can save up to 250 names, which is why each name instantly pops up after it has been previously displayed once.
Since the head unit is connected via changer bus, most functionality is based on a large disc changer, which does not contain separate VIOT modes. As a result, the data is saved only until the VIOT mode is changed. The whole list is cleared when you change modes. If the list was not cleared, the text from the old VIOT mode would remain until eventually rewritten, and also would lead to confusion.
We apologize for the inconvenience this causes you.
Best regards,
PhatNoise Customer Support"
Out of curiousity, I went out tonight and allowed it to "index" my playlists. Shut the car off and back on, playlists still displayed properly. Reset the headunit, and they all went away and needed indexed again.
Hmm....