xander,
Yes i agree that the instructions in the settings page are a bit vague.
I have updated this in my current dev version here is a snippet.
To setup your Musical Folders:
* Go to your home screen and select My Music
* Press your More Info button or Right Click and select Add Music
* Follow wizard to add/remove directories
I hope that helps.
Also news is that i have implemented a MP3 ID tag option so you can see the title of the MP3 instead of the file name. No idea how to do the same on the wma's though.
Hmm