Hmmm, I can fully appreciate this problem now! If you use MM to RIP online DVDs to a "<movie name>/video_ts" folder structure, by default, it places the XML file under "<movie name>" but MC expects it to reside under "video_ts". Therefore it's a manual process to move the file so MC can read it. For DVD rips, it would be nice if MC could first check the root (movie_name) folder for the XML and if not found, then search the video_ts folder.
Just working with this now - and it's a complete PITA.
If you are using My Movies via Windows Home Server and have the My Movies Monitor switched on - once you move the mymovies.xml file to the VIDEO_TS folder to get your MC library ship shape - this "monitor" then goes out to my "Video" share and recreates a new set of xml files within the Movie folder itself (not in the VIDEO_TS subdirectory). Then to make it even worse - when you reopen the My Movies Collection Management tool - it immediately picsks up these new "monitor" entries and creates dupes of all your movies in the Collection database.
The only workaround that I have right now is to shut off the My Movie Monitor - but that defeats the purpose of having My Movies running on the server in the first place - since it turns this into a manual cataloging process for me.
If Media Center wants to make this "import" truly useful for those of us who want to full benefit of the My Movies cataloging process - it needs to read the first mymovies.xml file it sees in the path rather than looking specifically only in the VIDEO_TS folder.
Cheers!
VP