When I click on "add directory" to the playlist, there is a file browser and if I click "cancel", it add files like if I had clicked on "open".
I am on gentoo linux, polux@polux ~ $ xfmedia -V Xfmedia version 0.7.0, Copyright (c) Brian Tarricone, <bjt23@cornell.edu> Released under the terms of the GNU General Public License. Compiled against xine-lib 1.0, using xine-lib 1.0. Compiled against Xfce 4.2.0, using Xfce 4.2.0.
Fixed in svn 2.5 weeks ago.