If you try to add a entry in the playlist for the frist time, check the folder it opens up from, that will be the folder where you need to put the AltLogo.png.

Okay I just duplicated this bug when the screensaver kicks in. Now to figure out why. Sorry.

You guys found the folder to place the AltLogo.png.
It is also the same place where the MA3Playlist.lst is created.....
.... Note that each OS will have a different place to put it. That is why I said that when you open the playlist for the first time, the initial folder where it looks for music is the place to put the AltLogo.png....

"...the initial folder where it looks for music..." - is the folder that holds the music file when you add the first entry into the playlist, -
NOT the folder that holds an empty playlist. - Check the path in the playlist entry....
Therefore, the location to establish, is the folder containing the playlist, not the folder where it looks for music.