My husband has loaded his music collection onto a usb drive. He has 5532 songs but the car is only reading 500 (in one folder). When viewed on the computer all the collection is in the same folder. They are currently saved as mp4 files.

Previously he tried to play these songs through an ipod classic which kept freezing after a period of time and he had hoped the usb option would solve the problem.

 

Yeah, been there. Remove USB, make sure you have music backed up, then reformat USB to FAT32. It will read folders with up to 999 files in it, btw. Then set up several folders. Do 2 for starters, to see if it worked. Then add more. I have 9 folders right now on my USB, after I did all those gyrations, and it recognizes them all.
Lagging streaming is not car. It's your music player on phone. I had same issue with Samsung Music app. I switched to jetAudio and it's resolved. You can also do VLC, it's about as good as it goes. Last resort is Aux cable directly plugged.

 

Many thanks for your tip on the music file. I have moved the tracks into 11 Folders, 500 per folder, and it is working well.
Thank you for that.
Dingles

 

There you go. You are welcome. Enjoy pleasant drive.