I can't create the playlist "in iTunes" if I understand what you're suggesting. My podcasts are in a variety of categories, from many different sources (NPR, PBS, various programs from those and other places, etc.). From those I wish only to select the items I'd like to hear, in the order I'd like to hear them, in any one session. To do that, I create a "LISTEN" playlist and drag the selections to that playlist. From there, I rearrange the order. Unfortunately, they don't play in the order I've rearranged. Therein lies my problem and frustration.
Still looking for a way to make this happen. Maybe a trip to the Genius Bar is in order. Ugh.
Thanks to both of you who've responded.