Can't sync certain playlists, iCloud getting in the way?

Hi All,

Just got my first iphone, 4 with 8gb. I've also got a 160gb ipod classic for my 90gb music collection.

What I want to do is have certain playlists on my iphone and I think that the way to do that is on the music tab in itunes when you're updating your iphone, but for some reason, that option isn't there for me. It just says something about iphone can access music in icloud. Does this mean I can't put music onto my iphone? Will this cause problems for me if i haven't got a strong wifi signal?

Little confused, and can't find anything about this in the documentation.

Thanks,

Dom