(The following does not apply to firmware versions 1.x)
Newly added books: Go to Settings -> Advanced Settings and check "Enable thumbnail generation". This will create a thumbnail and read title and author for every book that's added to the DR.
To do this for books already on the device: backup then delete global.db (on the root of the SD-card) and do the above. The next index could take a very long time.
As Mackx pointed out, in the SD-card view books are always shown by filename. One way to bypass this is to access the SD-card through shortcuts. You can create shortcuts (via the menu) for every directory in the root of the SD-card (Books, News, etc) and access the SD-card that way.
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