Theater View is slightly different.
In your mind, when imagining a view for Theater View, just remember that they work much like standard view "Category" views. Have a look at this:
As no categories have been added, this view will simply show a huge list of Audio files in Theater View. Once there, you would go up into the top roller, move along to "More", then down to "Toggle View", where repeated presses will cycle the file list through the availble view options.
If you add categories, you would navigate through each one before arriving at the final list of files. Think of this as similar to working your way through a panes view from left to right.
Finally, don't forget that if you want your Theater View, view, to load directly at the file list, you can use the "Set rules..." button to filter the list according to any preferences you may have, or leave that empty to list everything.
Hope that helps, shout if you need more...
-marko