As more and more files and folders are added, especially from an external drive, thumbnails get more and more corrupted. The files are fine when you play them, but the generic thumnails overtake the correct jpg that should be showing. This problem is definetly on Cyberlink end, as I verified mulptiple Hosts (PS3, Samsung TV, all PC in the network, etc and the same issue is reproduced EXACTLY all all the different devices.
Videos also do this, but since I was testing with PHOTOS I have more data to report with regards to that. I think this is a plain old BUG.....