WIn 7, Iphone 4s. Spotify Premium

With the newest version of Spotify I can finally control some music on my iphone from my computer. However, most local files won't play on the iphone from the computer. They are simply greyed out in the artist and album field. These files will play on the computer.

Also, the local files list on my iphone is empty. 

Can someone please help me with this?

One last thing: Where dafuq did the apps and my devices go? I can understand why my father is having a hard time keeping up with technology when the one application he loves is constantly changing with features disappearing as soon as you've started appreciating them.