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Good to see you have gone further than I did.  I have downloaded your zip file and tried it again, unfortunately I got the exact same result as I did before.

At the moment you click any channel within the "All Channels" folder, the XBMC displayed a short while "retrieving x items" then showed me two folder items:

Stop timeshifting

Stream 1.0

I can see the timeshifting has been started on TV server, but the Xbox still stays in the folder view.  Not sure if I should upgrade the MP TV server to version 1.0, I am currently using 1.0 RC3.