Problems problems problems...

1) I got Media Server set up, but I can't see any media files.  When I navigate to a parent directory on my AFP-enabled NAS (QNAP 809), it always says "no media files".  There are a bunch of subdirectories with files in them, but it won't even show me those.

2) I got XBMC running, but everything looks horrible in XBMC - heavy interlacing, no audio, choppy.  I tried DVD mpegs and 1080i MPEGs.

 

Any thoughts?  Is the AppleTV2 just not able to play DVD-mpegs or HDTV MPEGs practically?  I have yet to even both trying BluRay M2TS files, which I have no hope for given the performance so far.