What you want to do is make a playlist that points to that source folder and then add the playlist as the menu item. There is currently issues with directly pointing to a source folder from this skins customization menu. The only other way I know of is a bit involved.
As for the view you can change it in the slideout menu but you are looking at folders because you are pointing to a folder that has folders in it. It sounds like what you want is for them to be in a library view, which is possible, but a fair bit of work may be involved as you would need to make nfo files to provide the information that needs to be displayed as your doing user generated content.