OK.... just a followup.... I confirmed I have the latest JAVA... went ahead and downloaded the latest snapshot, replaced the JAR file.... fired it up.... went to the bathroom.... got a beer... drank the beer... started scrolling through pictures and videos and the problem with "corrupted data" is GONE.
Thinking I was a cheap drunk...
So I started thinking... either:
a) the latest snapshot did the trick
b) I accidentally let the PS3 finish loading the ENTIRE directory BEFORE I clicked on a picture or video.
Too tired right now to figure out if it's a) or b)
It works... although it takes forever.... like 5 or 6 minutes to load the entire directory list.
Now I know why I kept reading posts about people breaking up their directories into smaller pieces. That would solve the slow loading (for one directory anyway) AND get rid of the "corrupted data" at the same time. One possibility anyway. Could also be the latest snapshot is somehow better.