it does not "read from other servers", you can "point it to other servers", which is not the same (the scan function is for local folders only!)

if you want to import from the local server, then the music folder has to be inside the root of your site, not outside (like the structure you mention)
if your joomla installation is in /volume1/web/music, then the music folder should be (for example) in /volume1/web/music/music

do you know what I mean?

so how do you read music from an external server?

This is something I have requested in the past and I really hope germi will add this feature. This is something that a lot of other products have. They index a local drive or a share on the network, save the path to the database, and then generate a link for the players to use that appears as a local url that references the database location. I also have an extremely large library and do not want to move all my files onto a website.

There are a few work arounds, but unfortunately they have the same limitations/security issues as the current way MC looks for music. You can always create a mapping to your NAS location and then within your apache server config you could add an alias to that path. Something like setting the alias of m:\files\music\ to be that of mydomain.com/songs/ Then that folder will appear and act as if it was within your webserver and MC would be able to read it. On a side note, make sure to turn off directory browsing, or anyone that can look at your code or can guess your song path would be able to browse all the files and folders in those directories and be able to download anything they want.

I believe the feature that is mentioned about MC being able to read files off of another server refers to webservers, ie, instead of reading out of the songs folder on your own webserver by setting it to use just the file name, you can give the file a name with a url, like http://example.com/mymusic.mp3 and it can play that.