That is exactly my situation.
I am always having tracks show / play in reverse order, and albums within an artist in reverse alphabetical. flac, mp3, wma, whatever are all the same. However, the tracks show correctly (and play correctly) if you use the albums option on the menu where Directory is (rather than in the usual music menu). I advised iBasso who told me to upgrade to 1.1.7. I pointed out that it shipped from the factory with 1.1.7 (4th batch) and no further response.
You have to forgive me...
can you type your format for folder and file name like I did. Helps me "see" what is going on ;)
extension = .mp3, .wma, .flac, .aac, .ogg, etc
track number (format especially, so 1. 2. or 01. 02. 03. or 1-, 2- or 01-, -02 etc)
or whatever you use
Edited by figgie - 7/9/12 at 5:04pm