I tried running mt-daapd -d9, cleared the log, restarted XMBC and then browsed the mt-daapd server. As expected the playlists were empty, however the mt-daapd log was also empty. Not sure if this helps or not.
Kinda keen to get some guidance on this. I know you’re really busy and doing this for free, but I bought an XBox just for this… 😀
I guess first is find out if it’s working at all. Forget about xbmc, make sure it works with iTunes as a client. Connect with iTunes. Look at the playlists, and make sure everything works there.
I couldn’t tell from what you said above if that’s working or not. If it doesn’t work against iTunes, it won’t work against xbmc.
That’s the first place to start.