That sounds to me as though you're not on the Main Menu, but instead you're in the Settings/Main Menu, where you choose what is shown on the Main Menu. Repeatedly selecting Settings/Main Menu/Playlists would turn the checkmark (the tick) on or off.
With the checkmark "On", Playlists will be displayed on the Main Menu itself.
Currently, the list of items (where you see Main Menu) probably reads as follows:
- About
- Shuffle
- Repeat
- Main Menu
- Music Menu
- Volume Limit
- Backlight
- Brightness
...and more. At the top of the window, in the Title bar is the word Settings, which tells you that you're in the Settings menu.
Click the Menu button to return to the actual Main Menu. When on the Main Menu, you should see iPod in the Title bar. If you are in a sub menu, a long press of the Menu button will return you to the Main Menu without repeated clicking.
Your Main Menu will display whatever you have chosen in the Settings/Main Menu list, so I cannot be sure what is currently shown on yours.