If you've managed to share the two data files that go along with each video file (same file name, different file extension), they won't play. If you've shared the data files but not the video files, then you'll be stuck until you fix this.
However, if xbmc won't even play compatible local media files, it might be some kind of driver issue. In xmbc, try browsing to an mp3 file from the audio section, and check that plays. Then try browsing to a DVD VOB (not an encrypted one) from the video section, and check that plays.
Cheers,
David.