Playlist format

[paulr]

Apologies if I've missed it somewhere (I'm sure I have, just can't see it), I'm trialing Minim on my synology NAS and want to get a few things ironed out, notably the format of the playlist files.
What I can't get my head around is relative paths.
As an example I have a music file in:

/volume1/Music_NAS/Music/FLAC/16/John Hiatt/Slow Turning/12 - Feels Like Rain.flac

I currently have playlist files in
/volume1/Music_NAS/Music/Playlists

Question 1
What location is best for playlist files (m3u)?
Question 2
What path would I use in each line of the playlist file? (relative path).

Many thanks in advance and apologies if I've missed the info in the forum.