I have been using Relax for months with no problems, but there was something that always bugged me. When Im navigating the folders in XBMP, it shows the entire directory path of my shares. For example, the video files I am sharing on my PC are located at E:/SERVER/Media/MyVideos/Movies/filename.ext. Is there a way i can config xbmp to only show the active folder/filename rather than the entire directory path?

This was a known bug with older versions. Get a newer CVS release.

you mean all your files from all the folders are jumbled up into one big folder? i am having the same problem. how do i show one folder at a time?

to avoid that "one big folder for everything" problem, just check whether u have "flatten" enabled in relax.
because than its not a problem its just the functionality of that feature.