Another update.
Just to make sure I didn't have something screwed up, I created a new advancedsettings.xml file, as my original had a lot of extra stuff in it (turns out this is my essential settings)...
<advancedsettings>
<audio>
<streamsilence>1</streamsilence>
</audio>
<musiclibrary>
<itemseparator>; </itemseparator>
</musiclibrary>
<videolibrary>
<importwatchedstate>true</importwatchedstate>
</videolibrary>
</advancedsettings>
With this change, I was able to force update the Movie (Press 'i' on the remote, then select 'Reload', and 'No' to update from the Internet (so again it uses local NFO files), and this updated the Watched Status. Guess something was wrong with my old advancedsettings.xml file.
So now, I was reading about how to do a Reload of my whole Library (
http://wiki.xbmc.org/index.php?title=Upd...ing_videos), and there isn't an easy way (like Cleaning the Library or Updating the Library). I did find a very old post (
http://forum.xbmc.org/showthread.php?tid=138709), which kinda gave me the clues to make this happen.
So for example, if you go to Movies, and Files, and Edit the Source of your Movies (right click and Edit Source). Now since you already added the Source of your Movies, just click OK, and on the Next screen, where it lists Folder Contains (it should say Movies), change this to None and click OK. This will essentially wipe out your Movies Library from XBMC. Once complete (I have over 2600 movies, and this took about 10 minutes), You need to go back into Movies, Files, Edit the Source of your Movies, and click OK, and on the Next screen, where it lists Folder Contains (and it now says None), you change it back to Movies, and click OK (this took me about 30 minutes). Now when you look at your Movies, all the ones that have NFO files with the <playcount>1</playcount> in them will be show as having been Watched.
I also did this with TV Shows, and it works the same (but takes a hellofa lot longer, as I have over 500 TV Series with like 40k episodes - think hours for this part).
So when I watch a TV Show, and it has the green checkmark as being watched in XBMC, how do I tell XBMC to save this to the NFO file for the TV Show? Will exporting my Library to separate files accomplish this? Does it work for both Movies and TV series?