Richtoronto,
Do not try to update the firmware it is the fastest way to kill your player.
Make sure you have your repeat setting set to Normal, then you should be able to play the folder you want.
If you bought the player as a 4GB it is likely the memory chip is hacked as these players only support a max of 2GB memory. Browse the forums and you will find a ton of posts for memory loss and hacked memory and how to remove the hack.
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If you have been ripped off with a hacked player by a seller submit a report to www.ic3.gov
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