Yeah, does the musics have to be on a folder on your site? Or can they be on another website?
This mod captures mp3s, wmas, avi, asx or anythign else playable by Windows Media just by putting the URL of the existing file in. You can also manually upload files, but this is dependent on whether your host has hard-coded your php upload values
. Some hosts will let you define your own php.ini.
So the answer is no, this mod does not auto-detect music in folders, everything is client-side.