[getbent]

Mine works the same way. From what I can tell it will only show folders in the "list view" when there are actual audio files in them. So when you organize them by Artist -> Album -> Track since the actual audio tracks only exist in the album subfolders, that is all it will show.

Its annoying since you can only see the album names and not the artists when scrolling through them, but other than that mine works really well with a 32GB usb stick and AAC files.