Thanks for the suggestion, Jonathan, but using Settings> General Settings> File View> Follow Playlist> Yes does not make the Files list show the highlight on the track in Now Playing.
The manual says "This option determines what directory the File Browser displays first." Therefore this option makes the Files list show the directory for the track in Now Playing, rather than showing that track in the directory.
It would have been great if this option could have worked the way I wanted, but having installed Rockbox last week to get around the e260 limit on the memory card size, I'm finding Rockbox a superb application in general.
Thanks again for the great work that you and the other Crew members are doing on Rockbox.