External drive directory structure with ATVF question

I am considering ATVFlash having bought ATV. Couple of questions…

I have a 500gb ext HDD, if I format to FAT32 (windows7)…I then have all my dvd’s in a seperate directory, so for example all my music DVD’s are in a directory called “music” and all my movies are in a directpry called “movies”… in each of these directories I have a sub directory for the music or movie dvd…ie Rush Snakes and Arrows Disk 1 or in movies Gladiator. I have used DVD decripter to copy so they are VOB files.
Is it best to copy the two main directories (music and movies) straight to the route directory of the external hard drive. Is this the best thing in terms of navigation on the ATV or should I consider another way?

When you navigate above and select the directory of the movie will the move play straight away or do you need to play each VOB file?

You can setup folders on the external drive to organize your DVD files in anyway you choose. Selecting the respective movies folder will start the movie (each VOB file will not need to be selected).

More info on DVD file playback (including screencast demo) can be seen here: