If I am correct, you are looking for it to behave like iTouch/iPhone. Where you have your song playing and when you rotate the device to landscape all your albums in your library is viewable, correct?
So far, in my experience, I havent been able to duplicate this in the Hero's music player. You can 'trick' it by selecting All Songs from the selection at the bottom. Downside to that is, while it lists all songs in your library they are all sorted alphabetically by song title. You now have a very random listing... Another option is to create a playlist or two with the albums but it's still not quite what you are looking for I think. That's the only advice I got for now, unless there's a trick I am missing as well...

 

I think it just takes a while to index all the folders... Same thing happened to me...