lint,
It sounds like you are lusing a Windows machine, if so then try using ccxstream as:
ccxstream.exe -l 192.168.1.2 -r /cygdrive/e
change your config.xml to:
<share>
<name>Network (XBMSP)</name>
<url>xbmsp://192.168.1.2/video</url>
<cachesize>8192</cachesize>
<share>
Check to see if it works. If it works then the XBMP Manual is correct in this case.