I don't know what you mean by "that it only displays the deepest folders". It will list any folder that has a file in it that the EVA supports (video/music/photo). It does not have "live" folder browsing, it builds an index of your files and that list is what is displayed.
As for the FF/REW and other issues, the official release of firmware (v1.2.20) has problems. It doesn't display DVD menus, FF/REW only works on some file types.
And you need to manually tag any DVDs that you rip to storage. They included a Tag Tool with the software but the released version has problems with IFO files.
Most of these issues are being addressed in the Beta firmware. Go over to the Netgear forums and do some reading over there to get an idea of what works and what doesn't.
http://forum1.netgear.com/forumdisplay.php?f=85
"everything will be ok in the end. if it's not ok, it's not the end" - unknown
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