What do you mean by a playlist? Do you have multiple video files that you'd like to watch consecutively?
Yes that's correct, I can use the flv files with various media players but I don't get the text that is picked up when running player.exe
If the text file is something that should be read in programmatically, you'll need actionscript to do this. This is typically contained in a swf file that would be loaded into the player. The swf would then read the text file and load the flv's appropriately.
The player by itself is not a media player like vlc, wmp, etc.