That is weird then! That must be to do with the system process then, and there must be a glitch in it. Does it do this with any other folders with music in? Or deos it work?
Come out of that folder, to the main folder so you can see this new folder. Right click on it and go to PROPERTIES. Select the CUSTOMIZE tab and in the first drop menu (labled WHAT KIND OF FOLDER DO YOU WANT?) open that and select MUSIC FROM ONE ALBUM (or MUSIC FROM ONE ARTIST if you like, but album would be better, but whatever)
Then try it again. Might not do anything as it sounds like a system problem, but worth a shot. Might just be confused.....