After creating 4 different playlists based on the location of the files (i.e $MUSIC/Classic, $MUSIC/Jazz, etc.) I'd like to create Dynamic playlists for/from the Saved Playlist.

I can't find a way of doing this. The dynamic playlists only work with a local collection?

Thanks

Short answer: you can't. Long answer: Dynamic playlists do not have a location based bias, it just uses the collection in the database