Thats how I figured it would work but want to make sure I understood, thanks. Question two was talking about watch states mostly as DNLA has been discussed as a way to replace MySQL. I was wondering if I have a video coming from a different import would the watch states be synced? But from my understanding of question 1 I guess not which I guess might be a bit out of scope.
As to duplicates I have a bit of a proposal since there is no handling of it yet. I would think it would be best to have an ability to rank content so that the best is automatically chosen. So for example quality over import but Local over same quality. So for example lets say I have Hobbit 1 on blu ray rip but it is also on an available through an addon that is importing top movies or something but also in HD, when I go play it it would select the blu ray version but if I have SD Fringe episodes and the addon has HD versions available then it should use the addon. It could probably be done simply by assigning a property a rank value and then adding them all up for each duplicate, HD +10 DTS +10 Local +5 DNLA +3 Addon +1. Using that the Hobbit 1 blu ray would be 25 compared to the hobbit remote 21 (assuming same quality A/V) however Fringe local would be 5 and and fringe remote 11. If the source is not available (internet loss??) it would be instant -1 as in unplayable. Also if they have the same number then the first is used, also a context menu option for overriding what is used. These should all be definable by the user though coming up with the kinds of properties to use could be a bit of a challenge.
Hope that was clear kinda hard to describe what I see in my head