How to Create a Playlist in VLC

For this guide, I will assume you already have a folder with correctly numbered VLC-playable videos.

1. Add one of the videos to VLC (you can just play it, or select VLC first as default if not already done so.)
2. At the bottom of the VLC window, you should see a Play button (basically a triangle pointing sideways.) To the right of that, click the little icon that has a bullet-point and list. If you hover your mouse, it will likely say "playlist."
3. Click that.
4. Now you are in the Playlist mode. Add your other videos. If they arrive out of order, you may sort them. To do so, click along the top row where it says, "Title." There are other options to sort, such as by duration and ID. You may get even more by right-clicking along the aforementioned row.
5. Then click, along the top-most bar, "Media" then "Save Playlist to File." Choose a location where you want to be able to click-and-run the file. 
6. Done!

[Using VLC 2 and Windows 8]