I purchased one as well and posed the same question to RCA. While witing for their response, I found, once connected by USB, a generic icon named "RCA LYRA" appeared on the right hand side of my desktop (in the finder, not in iTunes). If memory serves me right, I opened this icon to reveal the files/folders it contains; then I dragged songs from my library in iTunes (not the playlists as you would drag onto an iPod) into the folder named "Audibles".
Then, without messages to guide me, I remembered to highlight the LYRA icon on the desktop (non appeared in iTunes) and then selected "eject" from within the iTunes window menu, guessing that this device would like to know it is being put away before disconnecting it. The whole time, the Lyra screen will just say "connected USB" and not give indication whether it is ready to be disconnected or not.
This worked great except for 2 things: it would not read any of my mp4 formatted files, which is why I logged on here in the first place, (where I received the suggestion to burn the mp4 files as audio wave on cd and then re-import as mp3 (I am thinking this makes so much sense that it will certainly work); the other problem is that I found the controls on the lyra for skipping songs/increasing volume, etc etc would work so intermittently/upredictably that my husband actually bought me a nano just to get me to shut up.
So, other than finding a sugar daddy of your own, I think this will set you up.
Hopefully the controls on your RCA unit will work more reliably.
Cheers, 008cats
G4 Mac OS X (10.2.x)