I originally posted this in a 1.0.7 wishlist forum, but this really is a bug that needs addressing. Here's the original post:
Here's how to duplicate it:
Select Advanced at the top, then iTunes Server on the left. Uncheck the root box. A field now appears for you to specify a new location. Select browse. When the box opens up with the list of folders on the drive, create a new one, then select it to be used. It will be something like "Volume_1/whatever".
When you click on the save settings button, the folder location will change to "admin". Save the settings. All of the settings below the save settings buttons will disappear (see picture below). Click on any tab at the top, then go back to the Advanced tab, select iTunes Server. The web interface will lock up for 60 seconds, or on Windows the page will show an error.
It apparently corrupts something in the settings because the only way to get it back to normal is to do a factory reset, either by button on the back, reset through the button on the interface, or reloading a non-corrupt settings file.
