traveler,
In regards to sound quality, it seems OK. I haven't spent a lot of time listening to it extensively because I am busy trying to keep the nuts and bolts of getting connected to the growing stack of players happening. If you want better feedback on this, try posting a new thread soliciting feedback from people who use it extensively and you might get a broader response that will be more useful.
I do not know definitively what Playlist types are supported. If you want, email me at steve @ jriver.com with the types you are interested in and I will connect the Nomad 3 and see what happens.
If for example you are wondering if you can export an .m3u playlist,keep in mind that to do this with MJ you would need to create a Playlist on Nomad and then download the files to the selected playlist. I know this will work. However, MJ does not display .m3u files directly so it is not possible to drag and drop the .m3u directly to the Nomad 3 which is why it is not relevant to MJ whether .m3u files can be sent directly to Nomad 3.
Steve