OK. A much better report.
You would be amazed at how much more happy I am to respond to a post like this. It is night and day for me.
One thing I suggested before, that I think you missed, is that you should open the genXML form which allows you to do each one individually and it tells you how many items were found. By doing that you can isolate which is giving you problems. (i.e artist or album movies etc) The GenAll button is design to give up if one fails rather than hammering away at XBMC which may not be on or may not be configured correctly.
Note that you shouldn't need to move or delete any xml files, VC will overwrite them if it is able to process what xbmc is serving up.
I assume that you are using version 0.873 ? If not, you should be. It is better at handling weird xbmc data. (at least it is supposed to be).
If you must use MM to scan and want to rename your files, that may work ok, but some artists/albums might not work. (I'm not sure)