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If you don't know about the ps3 media server, please have a look at the homepage. The short description would be 'It's the best media DLNA server around ;)'. It's open source, highly customizable and works for most files out of the box. MLX stands for media library extension. The goal of this extension is to let pms do the serving and transcoding jobs as well as it always did and to additionally offer a way to configure what files show up in which folder.
This screen shot shows where folders can be configured
There are a few things that will help you understand how to use the modification optimally.