Correct, when I select "Movies" from the top-level "share" directory, each directory that represents each movie is visible to the picker. See the screenshot. As described earlier, within each movie directory there exists two files, a mpg file named the same as the movie directory and a JPG.
As there are no sub-directories under each movie title [e.g. King Kong (2005)], when I choose any of these directories in the picker, it shows an empty set as I expect. I am; however, able to open each of these directories within the picker, which suggests to me that the application has permission to read.