It all has to do with your ID3 tags. I haven't personally tried syncing anything to my touch just yet. But I am however, quite the audiophile and organization freak. Try downloading Mp3tag... should be free software. Ensure that each file has the album artwork has been embedded. As far as the "Greatest Hits" goes, you can try renaming the album tags something like "Styx Greatest Hits" to help seperate them a bit.
Hope this helps!