Don't try to reflash the firmware, you'll most likely kill the player.
Make sure the videos are in the right format, Rockchips are especially picky on video files. As for that folder issue, it sounds like a bad memory chip. I've never heard of memory hacks on Rockchip players, so i think the flash memory has bad sectors. If you have a warranty on it, try getting a replacement.
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For my dreams i hold my life...
I miss my Meizu M6SL... Currently rocking a Sony Ericsson w595 on Samsung in-ear phones. Does fine, but it's not a chipod... 
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