Just take a look at the pilot's manual page 12 of 16.

http://line6.com/support/manuals/podhd

There is no creating. The number of presets is always constant (8 Setlists à 64 (4x16) presets -> 1A - 16D).

You have 8 SetLists. Into the first 4 Setlists there are stored the factory SetLists at first "BEST OF", "FX HEAVY", "SONGS / STYLE" and "DUAL TONES". Then come your 4 user Setlists "USER 1" ...."USER 4".

You can change from one SetList to the other by pressing down the "Preset" - button, then turning the wheel or using the up/down/left/right knob.

Important: You can use and overwrite each of them, no matter if they had been factory presets or user SetLists / presets before. There is no difference.

But with the device itself you cannot overwrite a whole SetList at once - only with HD Edit.

If you have overwritten your factory SetLists / presets: To get them back you should have stored these SetLists with HD EDIT. If you haven't, you can save your own presets first, then reinstall your firmware (or you can ask someone to upload his Factory Presets - files on customtone or so. It should be from the same firmware!!!).

You can move your presets from one place to any other place / SetList by overwriting. Just use the Move button after you have pressed the Preset knob.

If you need an empty preset, just use / save / copy the  preset "new tone".

As you can see now, you also might have a Setlist with a mix of factory sounds and your own user sounds. It is just a question of organisation.