JPEG picture instead of folder icon

Well to succeed with a library you first would need to have the right folder structure of your files.
1, Separate folders for TV Shows and Movies
2. Then you would go to Videos → Add Videos. You then would choose your respective folder for TV Shows or Movies. On the next screen you would then choose 'The directory contains` respectively.
When you confirm there the files will be added to your library and you will get a Movies and TV Shows entry on the main menu.

For this to work your files need to be named appropriately to be recognized by the scrapper.
If everything works you would get something like you can see in the first screenshot in this thread