No, it should take a minute tops to process such a small number of songs...
The progress dialog will only show items successfully processed though, that's a known issue that I haven't addressed yet.
Might be worth posting some of your log here, to see if it's processing any songs - look for MusicDirectoryProcessor.Process lines.
To open your logs directory click the button on the preferences forms maintenance tab.
In truth with such a small number of songs your chance of getting any playlists out of the client are small. They will still affect your recommendations on the website though.
Hope this helps.
Cheers,
Westy