OK, here's an update on what's happening now. When I do as you suggested and change the info so that the albums are not part of a compilation, they appear in the list of artists available to sync, so that issue is solved.
Something I did notice about this issue:
As an example-
I have only one album from the group Oingo Boingo.
This album was listed as a compilation, so Oingo Boing did not show up on the sync list.
I have several albums from the group Bad Religion, but only one of their albums is listed as a compilation. Bad religion DOES show up on the sync list, and the album listed as a compilation is also synced.
It would appear that artists who ONLY appear in the compilations folder and nowhere else are overlooked. This applies to several artists in my itunes library.
This is also true of multiple albums from the same artist, for example:
I have two albums from the group N
E*RD, and they are both listed as compilations, so N
E*RD does not appear on the sync list.
Some of the albums in the compilations folder actually ARE compilations, like movies soundtracks. These albums include several artists, and these artists only appear in my library on these albums, so none of them sync either.
Phew! How complicated!
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The only remaining problem lies with one single song. I'm not terribly upset about it, but I bring it up because it's a song I purchased from iTunes, and is the only song I own from this particular artist. For some reason, iTunes does not offer me the option to remove this song from the "part of a compilation" distinction. The option is just not available. I thought I would point this out since it's the only song involved in the dilemma that I did not copy from a personal CD, and appears to be uneditable because it came from the iTunes store.
It looks like this is a sorting/recognition issue with the newest version of itunes? I would assume that since the problem is solved when the files are edited to no longer be part of a compilation it's something that must be fixed via a patch to iTunes.