Yes. There are four play modes on the H2:
PLAY ALL - plays the selected song, then continues playing all songs in the same folder (alphabetically)
PLAY ONE - plays the selected song then stops
REPEAT ALL - plays the selected song, then continues playing all songs in the current folder. When all songs have been played, the H2 simply starts over and continues playing.
REPEAT ON - plays the selected song continuously until the use stops.

For more information and steps for changing play modes on the H2, check out page 45 of the H2 Operation Manual.