I just tried this and got the same result. But, here's the catch: when I selected a folder, it appeared empty in the explorer window. It just said "No items match your search." However, if i pressed the "Choose this folder" button, the pics I had in there showed up in the slideshow.
Here's what I think is happening (as stupid as this sounds): the explorer window is not looking for pictures - it's only looking for which folder you want to use. I noticed that the usual drop down menu containing choices of file types to look for is absent. Also, the box at the bottom which usually says "File name:" now says "Folder:"
So, my question for you is: have you tried going ahead and selecting the folder you want to use anyway - even though it appears empty in the explorer window? If not, could you give it a try and let us know what happens?
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