If you have a gyro mouse or gyro remote there is additional info that displays when you mouse over a cover. I don't remember if episode info is there or if it's just the full title.
As I understand it, the devs (just Thom??) are working on improving the handling of videos with special attention to recorded TV media types. For now what I do is watch recorded TV from within Myth which does sort by show name and has another panel with episode names as well as easier deleting, returning to that screen after a show is played, etc. If it's a TV Series DVD I rip each episode individually, create a play list, and play from there. This keeps track of what I've played and lets me continue from where I left off.
In short, there are a lot of limitations and playing TV shows via video menu is a bit klunky IMHO, but the devs are doing a great job and are aware of the shortcomings. Best advice I can give is stick with doing things the LMCE way, tag your media correctly, and be patient until new versions come out.
