This is how I removed all the folders and drives I don't want
Vista Media Centre (VMC) to watch/list and have it only watch the ones I do.
STEPS:
1: Delete ALL video files listed in Windows Media Player (WMP) Library.
NOT the files themselves of course, just the entry from the library.
2: Remove or ignore ALL folders in WMP watched folders except "recorded tv".
3: Remove ALL Folders from VMC except "recorded tv"
4: Delete ALL video files, folders and shortcuts
from the folder \USERS\PUBLIC\PUBLIC VIDEOS
5: Delete Shortcut to Sample videos from \USERS\PUBLIC\RECORDED TV
6: Delete ALL video file