well, not exactly, but I might can give a hint that can get you the same functionality.
Map a button to the 'next screen' function. When you load a file from a folder like that, all the files in the folder get loaded into the playlist. So, by using 'next screen' you can flip over to the playlist and pick another file from the same directory.
Sorry if that isn't exactly what you are after, but that is how I have my MyPod set up and I find it very useful.
Re: the smaller font... I don't have a clue!