You need some video playing software and the proper codecs installed. Ideally you should install Dscaler's MPEG decoder as it is free, but there are lot's of others which are decent. Natively Xlobby works well with either Zoomplayer or Theatertek. The newest xlobby pre-releases (and eventually V3 should you have paid out for it when the offer was on the table) have a built in player. You can get MPC, VideoLAN, or any other player to work...it just takes some time and skin modifications to pull it off.
Other than that it just takes building a database. Now some use DVD Profiler to help, but others (including myself) like to use ANT Movie Catalog, along with XANT to build/maintain a movie database.
Hope this helps.
Your best off, since your starting out, is to read some of the documentation. If you goto either sharp_1's googlepages or my xlobbystuff googlepages, we have a slew of documents. Basically you should look at these:
http://xlobbystuff.googlepages.com/Begi ... Xlobby.pdfhttp://xlobbystuff.googlepages.com/Baddabings_Guide.pdfThose two docs are great to get you going, and well worth a read.
Hope this helps.