Well, he could have simply cut and pasted my earlier post, and saved some time.
Yes, you found the solution, and I said exactly what you wrote - perhaps with a bit more step-by-step.
We actually made two mistakes in diagnosing flip's problem:
1. We didn't
insist on an actual description of
all of the exact steps that were being performed. However, my experience is that some folks find it "insulting" to be told that "I open Music Playlist from the Marine Aquarium settings." or "Nope, I can't get it to work either with or without the spaces" are not complete descriptions of what they did.
2. We never thought to ask "what music plays when you have done that"?
Of course, we also
assumed (until you observed differently) that all the ways of getting to the Screen Saver Settings panel would have identical behavior - because the panel looked the same, however we got there.
And Jim assumed that W7 could be blamed for the problem - when in fact it was a residual bug that had not previously been reported.
[Jim, very-limited testing suggests that this bug was introduced in the version that added several buttons, "move", etc. to the Music Playlist panel]