Ive been using my Droid for 6 months now and love it.
when using the music player the song title shows up with the the artists name beside it. The artist is then listed as "unknown artist".
the albums are not seperated. for testing purposes I have loaded 2 albums on the droids SD card. The songs show up as 1,1,2,2,3,3, etc.
I am using WMP and dragging my albums onto the droid via the sync.
While syncing WMP shows the title, album and artist, etc