Hi,
Did you try recursive sync from Admin > File Manager > The Directory that contains the media file
It may help
I didnt use media module but, i was able to host mpg files with Repository module
1) Edited my web.config file to allow large files
2) Edited Host Settings > Allowed File Extensions
3) Placed a Repository Module and configured it
4) Uploaded file and it worked like charm.

You may use full path for filename with uploading via ftp
Repository allows this method.

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Answer to both posts:
-Yes I did use the recursive sync option, the file manager sees the file but the module doesn't
-Renaming to avi works!.... Thanks for the suggestion.
I'm still wondering why mpg doesn't work.....but a least I have a workaround.

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