Please try out the latest beta and let me know how that works for you. A folder named "VIDEO_TS" must be present for this to work. (Capitalization doesn't matter).
FYI... you can't delete them through the interface. Also there was a crazy Media Center bug where when you stopped playing of the dvd structure it would seem to just hang there until you pressed the back button. I've attempted to fix that by returning the user to Recorded TV HD after playing stops, but you may notice a slight delay.
Latest beta info and download