After following Guino's instructions, I saw that winamp was saving the current playlist song paths in this format:
As you can see, my flash object was passing the "\\" through to the playlist when it would save, causing it to screw-up when I would close RR then Open it again.
Solution: I edited the xml that the SWF was reading from to this format:
and retried everything and it worked perfectly. I guess the "\\" isnt needed when passing string commands from flash to RR. I could of swore I read that it needed \\ somewhere....
Thank you Guino