These XBox Music Pass threads need to be consolidated.
Anyway, here are the instructions:
1) Take everything you ever learned about music downloads, streaming, iTunes, etc. and drag-n-drop it to the Recycle Bin in your brain. Right click the bin and select "empty." Select "Yes" when it asks you whether you want to delete all prior ways of thinking about music downloads.
2) Welcome to XBox Music (formerly Zune). Your music pass entitles you to unlimited streaming and unlimited DRMed downloads of songs.
To use XBox music to find music:
1) Click on the Store icon.
2) Click on "Music."
3) Click the search icon (the little magnifying glass).
4) Search for your artist and track.
5) Click the little "play" button next to each track.
6) Yes, there are options to purchase albums. By purchasing an album, you get to keep it and download as many copies as you want, forever and ever, regardless of whether you have an XBox pass. If you're not planning on stopping XBox pass anytime soon, you don't need to worry about this. Ignore it, don't purchase. You will still see these prices whether or not you have a pass.
7) You have the option to stream or download. To stream, just tap the play icon next to the track or album you want. To download, tap and hold until you get the menu. Select "download," and it will be downloaded to your device.
8) To create a playlist from an album, just play any track from that album, tap "..." in the bottom of the screen, and select "create playlist." Then you can name the album and it shows up on your playlist, ready to stream.
9) Remember, if your XBox Music pass expires, you can no longer stream or download. You'll have to purchase albums or music tracks, or re-up your pass.
That's it! Enjoy!