Hi
No it should be fine, if anything you get away with bigger Jpg files for folders on this.
In fact when I swapped from my old WDTV Gen 1 to this, all my folder jpgs showed up after the hard drives were scanned.
The only thing this does as with the other WDTV is not show new folder jpg files once you change them, you have to either switch Media Library to off then on again, to allow a rescan - or power off with the remote power button for more than 3 seconds, then power on and it does a full restart and scan everything again.
Is it all folders, or just some ?
