@fnkngrv Hey man. Here's a few samples of my gamelist.xml folders. Before you look at them, you need to keep in mind that you need to treat each sub folder exactly as you would treat each rom in the sub folder, meaning that you need to have a separate <folder> entry for each one (along with any paths to the media you want displayed while highlighting it.
Then, to display all of the media for the roms in the sub-folders, you need to have the rom <path> in the <game> show the location inside the sub-folder, not the main folder, and the <image> show the location of the media for that game. (Ask me specifically if you have any questions about it after checking out some examples.
NOTE: I actually have 6 folders in the /home/pi/RetroPie/roms/nes/ folder. A few of these have roms directly in them, but most of them just have sub-folders before you get to any roms.
NOTE 2: You can have the "media" you want displayed for the folders and roms anywhere you want them as long as they're being pointed to. My folders media is located here: /home/pi/RetroPie/Media/nes/Artwork/Folders/
MAIN "LICENSED GAMES" FOLDER:
/home/pi/RetroPie/roms/nes/(1) Licensed/
<folder> <name>(1) Official Nintendo Entertainment System Games</name> <path>/home/pi/RetroPie/roms/nes/(1) Licensed</path> <image>/home/pi/RetroPie/Media/nes/Artwork/Folders/(1) Licensed.png</image> <video/> <marquee/> <desc> [REMOVED - I just removed the text here to keep it simple]</desc> <releasedate>19850101T000000</releasedate> <developer>Nintendo</developer> <publisher>Nintendo</publisher> <genre/> <players/> </folder>US LICENSED GAMES (SUB-FOLDER):
/home/pi/RetroPie/roms/nes/(1) Licensed/(1_1) US Licensed/
<folder> <name>(1) US: Licensed NES Games</name> <path>/home/pi/RetroPie/roms/nes/(1) Licensed/(1_1) US Licensed</path> <image>/home/pi/RetroPie/Media/nes/Artwork/Folders/(1_1) US Licensed.png</image> <video/> <marquee/> <desc>[REMOVED - I just removed the text here to keep it simple]</desc> <releasedate>19850101T000000</releasedate> <developer>Nintendo</developer> <publisher>Nintendo</publisher> <genre/> <players/> </folder>Now, here's an example of a US Licensed game in the sub folder
<game> <name>1942</name> <path>/home/pi/RetroPie/roms/nes/(1) Licensed/(1_1) US Licensed/1942.zip</path> <image>/home/pi/RetroPie/Media/nes/Artwork/Box Front/1942.jpg</image> <video/> <marquee/> <desc> 1942... you and daring fighter pilot "Super Ace" are engaged in realistic, thrilling and challenging high-flying battles with the enemy. Over land, on the sea and in the air, your own skill and dexterity... combined with Super Ace's flying mastery, duel enemy pilots in fighter and bomber craft. 1942... it's airplanes taking off and landing on ocean-going aircraft carriers... disrupting enemy formations ready to attack... intercepting enemy air-warriors you must defeat by "blasting 'em out of the sky." Will it be victory? Or defeat? It's in your skillful hands! https://www.gamefaqs.com/nes/587058-1942</desc> <releasedate>19860101T000000</releasedate> <developer>Capcom Co., Ltd.</developer> <publisher>Capcom U.S.A., Inc.</publisher> <genre>Shoot 'em Up / Vertical</genre> <players>2</players> <region>USA</region> <platform>nes</platform> <media>Cartridge</media> <controller>NES Gamepad</controller> <gametype>Licensed</gametype> <xtrasname>1942</xtrasname> <originaltitle/> <alternatetitle/> <hackedby/> <translatedby/> <version/> <cart>/home/pi/RetroPie/Media/nes/Artwork/Cart/1942.jpg</cart> <title>/home/pi/RetroPie/Media/nes/Artwork/Titles/1942.jpg</title> <action>/home/pi/RetroPie/Media/nes/Artwork/Action/1942.jpg</action> <threedbox>/home/pi/RetroPie/Media/nes/Artwork/3D Boxart/1942.png</threedbox> <gamefaq/> <manual/> <vgmap/> <license/> <programmer/> <musician/> </game>Note that in the above example there are a LOT of tags that you won't be using or needing in your XML. These are mostly tags for data and media that are not supported by RetroPie/EmulationStation currently.
The important things to look at are the <name>, <path> and <image> tags. You can also add videos to display for folders and roms if you want by making sure the <video> tag shows where the proper video is located.
Hope that clears some stuff up for you. Feel free to ask any questions. I figured I'd just end the post now instead of writing a total novel, since I'm not exactly sure what your issue is without more information.