Adding video sources
Adding videos to the library/Contents
Media sources are the links that tell XBMC where your content is stored and what type of content is contained within each one. You can have multiple sources for each media type.
You can use local media, file shares, removable USB drives, etc. UPnP won't work with the library features in XBMC, but just about all the other options should be fine.
Step 4: Now browse to where you keep your videos stored. Once you have found the folder you keep your videos in, click the "OK" button. If you keep them shared on a network drive, read the Configuring PC Shares article for more information about setting up a share on your computer first.
Step 7: There are a number of options underneath, see Setting content and scanning to check what options to enable. Then click "OK"