Where exactly did you create that VIDEO folder? I can't seem to get my videos or anything to show up still either. I don't get a "Display All" option either when pressing Triangle like I would when I would transfer videos over from my USB drive.
Sorry for the delay. Well mine is a USB flash drive. So not sure if you're using something else (like a USB hard drive, which I haven't tried). But on my flash drive, when I put it in, and go under Video on the XMB, it lists the flash drive there. I scroll to it, and then the Triangle gives me the menu with Display All, which sounds like you're familiar with.
As for the VIDEO folder, I just put that in the root directory of the flash drive, and then put my video files in there. I guess also be sure they are some format the PS3 recognises too (.avi, .mp4, etc).
im having a similar problem but a bit different.
For quite a while now ive been able to link my homegroup to my ps3 with no problems. i just added whatever file it was to my appropriate folder, right clicked the folder and clicked share and clicked everyone. and up until the other day it was no problem. i havent changed any homegroup settings, and i havent altered any network settings on either the computer or the ps3. and its not the file type (mp4) because it did not cause an issue before. It was like one day it just didnt work anymore. does anyone have any ideas, i cannot solve this. And i have tried just about anything i can think of. changing homegroup name. changing settings on and off. changing file types. etc etc etc