Here’s a great tip for how to avoid setting up your Windows Media Center and constantly starring at the shared folder on your Windows Home Server, rather than the contents of that folder (as above).
Rather than use the Windows 7 libraries (contrary to common sense) a fix can be found by using the old Windows XP/Vista method of changing the location used by your profiles My Pictures and My Videos folder.
Right click on My Pictures and select properties
Click the location tab and select the Move button
Navigate to your home server and click on the pictures folder and hit Select Folder
Then, just OK out of the properties window. You will be asked if you want to move your files, I let it, but I don’t have any files anyway, so it doesn’t have any side effect for me, if you have data already in you My Pictures folder, you should consider moving it first.
This tricks Windows Media Center into showing the contents of these folders, rather than just the shared folder, the same can be done to fix My Videos.
This tip via the excellent blog, Missing Remote.