The lines like this:
<?php if($time == "1" or "7") ?>should be written like:
<?php if($time == "1" || $time == "7") ?>
That's the first think I saw. I may post more later.
It's later. :-)
Your code can be shortened considerably:
<?php
$day = strtolower(date("l"));
$time = date("G");
$servertime = date("l");
$file_range = array('', '_1_7', '_2_8', '_3_9', '_4_10', '_5_11', '6_12', '_1_7', '_2_8', '_3_9', '_4_10', '_5_11', '6_12');
$file = $day . $file_range[$time] . '.m3u';
?>
No more if statements at all, just get what you need out of an array and get the full day name.
Ken