Music App, Zune, Windows Media Player

I used to use WMP a lot because I like how it automatically organized my music then I started using Zune to play music but not organize and now I want to use the Windows 8 Music app and am running into some problems.

I have a subscription to Xbox Music and apparently it looked at my playlist and music on my desktop and sent them to my Xbox Music so it can stream the songs from Microsofts server to my laptop and Xbox which I like. The problem is it is redownloading all the MP3's I have as DRM protected WMA files of a lower bit rate often and then the DRM doesn't update and I can't play the songs even though the mp3's are perfectly fine.

1. How can I get it to stop downloading the drm protected wma files of mp3's on my desktop and have the Music App play the mp3's instead?

2. Can someone clear up how the system picks up my mp3's and adds them to a list that I can stream to my Xbox Music devices? Does it only pickup play list or all of my music>

3. Is it possible to have mixed play list with mp3's and wma

4. I am also getting an error eveytime it tries to play a drm protected wma claiming I am logged in somewhere else which I'm not so the Xbox Music server is completely useless on my desktop.

maybe you can see if this document helps you out:

http://winsupersite.com/xbox-music/xbox-music-book-13

it'll probably do a much better job than me of explaining.