No Media in current folder - Folder is on iMac


I’m trying to setupmy new WDTV live plus HD.  I followed the  Tutorial exactly, and when I go on the WDTV box, navigate to video, then network share, then I can see my iMac, when I click on it, it prompts me to enter a password, which I do and then it apears to go to the next screen. I see the preview box for the video (i think) and I get a thinking/please wait circle.  Then I get the message poping up on screen “There is no media in the current folder”.  But on my iMac I have about 20 .mkv files, and about 3 .avi files in the folder that it is looking at (The only shared folder on the iMac).

I am running the most current firmware (1.06 something). The WDTV is wired to my router, my iMac is wireless to my router.

Any ideas??

Please review this  steps and make sure the folder has been properly shared over the network.