I have gone into my DNS-320 (NAS) Web UI and looked at the network shares and indeed only the P2P folder is set as NFS, and it appears that the WD TV LIVE SMP can only view files inside NFS folders.
I tried creating another NFS folder and it indeed could be seen and Added by the WD TV LIVE SMP. However one thing i have yet to test is if i can than add this new folder that i had created as a uPNP DLNA shared folder.
Will check it out when i get back from work and update you guys!!
Am facing some new problems now but thats for another seperate post!