I recently moved my Picture library (actually all my Media) into a new folder structure. Using the Manage Library function in MCE Windows 7, I selected the new Picture folder. Now when I go to look at my Pictures using Media Center, all the pictures show up in one folder called Pictures and all the Picture sub-folders are inside of it. Previously, all the Picture folders showed-up at the top-level. It's a relatively small issue but annoying. This also happened with Videos but not with Music or Recorded TV.

I've been wanting to change the folder depth of my videos, so far it appears that these folders can't be minipulated to do that.

You need to make My Pictures, My Videos etc the default directories for their respective media then then they will appear as you want them.  Find the relative folder in Windows Explorer, right click, select Properties, then Location tab.  Change the location in there.

Rich

Media Center is inconsistent in how it uses the "Libraries" of Windows 7.  Movies, Music, and Recorded TV work with their respective libraries the way you would expect.  However, any folders added to the Pictures and Videos libraries just show up as folders under Pictures and Videos in the Media Center user interface.  The frustrating thing is, this is not how it worked with MCE 2005 Public Folders.  In MCE 2005, if you set Public Pictures to a network share, the Media Center interface showed you the contents of the folder in Pictures, not just a single folder with the network share name.  Windows 7 has gone backwards on this functionality.  I logged this "bug" early on in the Windows 7 beta and was told it was "by design." 

The above solution (may) work, but it won't help you with extenders.  You'll have to go digging in the registry for the extender's profile to set the My Pictures and My Videos folders.  Also, if you don't have a dedicated Media Center computer, such as an HTPC, this makes working with photos and videos outside the Media Center domain more difficult.

I gave the suggestion above a try but no luck. It's not a big deal just a minor annoyance. Thanks.