At the risk of appearing ungrateful to those who have offered suggestions, I find it pretty amazing that VMC doesn't appear to have a built-in continuous play option for video files.
Perhaps I should have used the word 'continuous' instead of 'sequential' in the original title of this thread. In other words, on one level, I don't really care what order the video files play in. All I want to achieve is to be able to select a folder in the VMC videos section, and for VMC to play all the video files in that folder continuously, one after the other, without further manual intervention.
Here's hoping!

Windows 7 Media Centre perhaps??