Front Row very slow - different filetypes?

Just wondering if I could get other people's experiences with the performance of Front Row, and what kind of files they use.

For example, my Front Row is very very sluggish in scrolling and moving in and out of menus.
I've got probably around several hundred TV Shows and Movies in there, and for the most part I've used the No. 2 Method - Create Reference Files to import files into iTunes.
I'm wondering if this method results in slower performance in Front Row than perhaps maybe No 3 - copy into compatible container???

Any thoughts?