K gang - Need help

Downloaded the MediaServer - Downloaded the ffdshow package they recommended (even though I have XviD, it said to use this one, so I did, because it wasn't working and I hoped that would fix it).
I can connect to the mediaserver just fine.
I can see 1/8 of the movies in my folder.
I cannot play any of them - Clicking play on 360 merely does nothing. No movie, no error, nothing.
Help?
BTW - For those complaining about video quality - Please note there is a setting for video resolution, which I believe is for when you are transcoding.. You'll probably need to change that, since the default was like 400x300 - It's under settings / transcoder.. Mine is still at default since I cannot get it to play anything even at the default settings, but I'm pretty sure that's what you'll want to change..