How do i add playlists to my ipod touch?

hi, bit clueless when it comes to these things, i have bought a ipod touch withou box etc, i have three playlists under the music section titled "on the go" "purchased" and another "on the go"......i can remove and add tracks to one of the "on the go" ones but cannot create new playlists, say one for gym, one for work, etc etc,does anyone know how to add more playlists?? is it possible or is three the max??? many thanks in advance!!