Are you using the Music app or WMP? I scrapped the Music app on W8 (PC) and just use Media Player like it was iTunes. I had a ton of organized music in the iTunes folder (inside My Music in Windows 7) but when I upgraded to Windows 8 the Music app didn't show it. Somehow I managed to get the music to show but I couldn't synch it to my WP8 phone it was like the phone wasn't recognizing the Music app. So I went back to Media Player, searched the My Music folder and all my music came in to the WMP screen. I was then able to create and synch playlists, etc. to my phone.
But I could not get the actual tiled Music app to work right. Even when I got the music to show up it was a massive list, very few sorting options from what I saw and I didn't like the look of it one bit. Not something I think I can get used to either, seemed very Fisher Price compared to say iTunes. WMP is fine though.
As an aside, the music app on WP8 is great except whenever I leave the app or the phone goes to sleep and I go back it always kicks me to the app's splash screen. it would be nice if it remembered where I was. Sounds silly but I am constantly handpicking my music and scrolling and always in and out of that app. I noticed that about a few apps on this phone, it doesn't always remember where I was, it seems like with my old iPhone it always remembered my last place in everything.